NCLT reserves order on Uttam Galva firms

UTTAM GALVA METALLICS AND UTTAM VALUE STEEL OWE ₹3,200 CRORE AND ₹2,200 CRORE TO THEIR LENDERS, RESPECTIVELY

MUMBAI: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 ₹3,200 crore and ₹2,200 crore to the lenders, 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.”