The National Company Law Tribunal (NCLT) on Friday reserved its order till 26 June in the insolvency plea filed by the State Bank of India (SBI) against BSE-listed Uttam Value Steel and Uttam Galva Metallics Ltd, subsidiaries of debt-laden Uttam Galva Steels Ltd.
Uttam Value Steel and Uttam Galva Metallics owe banks ₹3,200 crore and ₹2,200 crore, respectively.
Ziraat Ban, the second-largest state-owned bank of Turkey, has sent a letter to SBI stating that one of their high net worth clients is interested in acquiring the assets of the two Uttam Galva subsidiaries, senior counsel J.P. Sen, appearing for the beleaguered steel makers, said on Friday.
The bank has communicated this to SBI several times but has not got a reply yet, he said.
“The dues of SBI are to the tune of ₹334 crore and the total dues of all the lenders are to the tune of ₹5,400 crore. However, SBI has not reverted to the communication though it is representing the joint lending forum,” said Sen.
Meghna Rajadhyaksha, partner of law firm Shardul Amarchand Mangaldas representing SBI, argued that this seems to be just delaying tactics by the debtor.
“The name of the investor is not mentioned in the letter sent by the Turkish bank to the SBI chairman,” said Rajadhyaksha. “The offer can be taken up to the (RP) as well once the company is admitted under the insolvency process for resolution.”
After hearing the argument, the presiding officer of NCLT’s Mumbai bench, M.K. Shrawat, reserved the order till 26 June but observed that the parties can explore settlement of the matter till next Friday.
Earlier, on 6 June, another bench of NCLT had adjourned the insolvency plea of Uttam Galva Steel to 16 July, following requests from the company as well as its lenders.
As the National Company Law Appellate Tribunal is set to hear a petition on the insolvency resolution of Essar Steel Ltd, ArcelorMittal India Pvt. Ltd—which is vying for Essar Steel and which once owned shares in loan defaulter Uttam Galva—has deposited ₹7,000 crore in an escrow account to qualify for the bidding. If NCLAT declares ArcelorMittal eligible, the money in the escrow account will go towards settling Uttam Galva’s debt.
Source: Livemint, June 16, 2018