Team News Riveting
Mumbai, June 6
The Resolution Professional of Uttam Galva Steels Limited (UGSL) has filed an application with the Adjudication Authority yesterday for approval of the resolution plan submitted by AM Mining India Private Limited, an arm of billionaire Lakshmi Mittal-owned ArcelorMittal.
“Further to our intimation dated 3rdJune, 2021 and pursuant to the provisions of Insolvency and Bankruptcy Code, 2016, we would like to inform you that the Resolution Professional of Uttam Galva Steels Limited has filed an application with the Adjudication Authority on 5thJune, 2021, for approval of the Resolution Plan submitted by AM Mining India Private Limited,” UGSL said in a regulatory filing today.
Earlier, the Committee of Creditors of UGSL has approved the Resolution Plan submitted by AM Mining India Private Limited through e-voting process that was held between 17 May, 2021 and 2 June, 2021. The company had reportedly agreed to pay around Rs 4,000 crore for the Mumbai-based steel manufacturer as against claims of over Rs 20,650 crore, of which about Rs 9400 is owned by financial creditors.
UGSL would be the second biggest purchase of ArcelorMittal, one of the world’s largest steelmakers, in India through the insolvency process. It was the successful bidder for Essar Steel for Rs 41,000 crore in 2019. As many six companies including JSW Steel, JSPL and Vedanta had submitted their expression of interest. However, only AM Mining India had submitted a resolution plan.
With 250 acres of land and more than 100000 square metres of covered shed, UGSL facility is located near Khopoli, about 100 km from Mumbai. As per the firm’s website, the plant has a facility for cold-rolling HR coils, with a capacity of 1,000,000 tonnes per year and annual galvanising capability of 750,000 tonnes. At present, 50 per cent of the firm’s finished steel production is being exported.
The company counts corporate including auto majors such as Mahindra & Mahindra, Bajaj Auto, Piaggio and Tata Motors in its client list.
