Banks Approve Rs.2,400 Crore Resolution Plan For Steel Assets Of Uttam Galva

 

 

Lenders to the distressed steel assets of Uttam Value Steels and Uttam Galva Metallics, approved a `2,400 crore resolution package in a staggered payment plan that requires banks to take haircuts of more than 60% on the loans.

Two people aware of the resolution plan said the offer includes equity commitment of `100 crore. Of the total amount, about `650 crore will be paid immediately, with the remaining spread over the next five-six years, said one of the executives aware of the payment plans.

The resolution professional, Rajiv Chakraborty of PwC, had until May 7 to get the plan of CarVal Investors and Asset Reconstruction Company of India (Arcil) approved by the dedicated bankruptcy court. The assets, which are associate companies of Uttam Galva Steels, comprise onemillion tonne hot-rolled production capacity of Uttam Value Steels at Wardha in Maharashtra, for which the former purchases pig iron from Uttam Galva Metallics.