SBI withdraws the petition in bankruptcy against Uttam Galva Steels

The total contributions of Uttam Galva Steels were raised to 7,880 crore in September 2017. Photo: Bloomberg

Mumbai: The State Bank of India (SBI) withdrew an application for insolvency against Uttam, based in Mumbai. Galva Steels Ltd. The decision of the public lender was taken after ArcelorMittal paid 7,469 crore to pay off the unpaid debts of Uttam Galva and KSS Petron, two companies in which Lakshmi Niwas Mittal had been promoter.

ArcelorMittal cleared the debts to become eligible. Last month, failed lenders of Essar Steel Bankrupt accepted the resolution plan presented by a joint venture of ArcelorMittal, promoted by Mittal, and the Japanese companies Nippon Steel and Sumitomo Metal Corp.

On Thursday, Meghna Rajadhyaksha, a partner in SBI representative Shardul Amarchand Mangaldas, told the court that the lender had decided to withdraw the petition.

The NCLT, chaired by V.P. Singh and Ravikumar Duraisamy, accepted SBI's request.

SBI filed the petition in bankruptcy against Uttam Galva after the company failed to pay 1,486 crore of its total outstanding amount, 1,832 crore. The total contributions of the steel company listed in Mumbai amounted to 6,880 crore in September 2017. "We can not comment on the development or our future strategy at the moment," Ankit Miglani, general manager and member of Uttam The founding family of Galva said in an interview. "We are still studying the situation." ArcelorMittal has not responded to a request by e-mail.

Uttam Galva is part of the so-called second list of defaulters of the Reserve Bank of India, against which the central bank had launched a swift action. [19659003] On March 24, Uttam Galva informed the markets that she had received approval from BSE and the National Stock Exchange to declbadify the world's largest steelmaker, ArcelorMittal, as a promoter of the company. . ArcelorMittal held 29.1% of the capital of the company since 2009.

However, he asked Miglanis, founders of Uttam Galva, to buy back his stake in the company to be able to bid for another badet subject to tension, Essar Steel Ltd.

On Oct. 4, the Supreme Court granted ArcelorMittal and Numetal Mauritius – the two Essar Steel pioneers – one last chance to settle arrears in related companies and submit new bids. ArcelorMittal subsequently paid 7,469 billion crore (about $ 1 billion) to the financial creditors of Uttam Galva and KSS Petron.

Although the flagship company has managed to get out of the woods, two subsidiaries, Uttam Value Steel and Uttam Galva Metallics as part of the Business Insolvency Resolution Process (CIRP), since they owe the banks 3,200 crore and 2,200 crore respectively.