Debt

Debt Financing

Lenders of Uttam Galva Steel approve ArcelorMittal's resolution plan

Economic Times  

The lenders of debt-ridden Uttam Galva Steels Ltd have unanimously approved the resolution plan of steelmaker ArcelorMittal Group. On October 1, last year, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted an insolvency petition against the debt-laden Uttam Galva Steels Ltd (UGSL) in a petition filed by the State Bank of India (SBI). The company had defaulted on its External Commercial Borrowing (ECB) facility extended by the bank to the tune of USD 6.6 million in November 2019. Earlier in March this year, ArcelorMittal emerged as the sole bidder for the indebted Uttam Galva Steels. About half a dozen companies including JSW Steel, Jindal Steel & Power (JSPL) and Vedanta-owned ESL Steel, had submitted an expression of interest (EOI) for Uttam Galva. The resolution plan was reportedly submitted by AM Mining India.