NCLT Reserves Order On Plea Against Uttam Value Steel And Uttam Galva Metallics

- Jun 19, 2018-

Mint reported that 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 Uttam Galva Steels Ltd. Senior counsel JP Sen, appearing for these steel makers, said “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. 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 INR 334 crore and the total dues of all the lenders are to the tune of INR 5,400 crore. However, SBI has not reverted to the communication though it is representing the joint lending forum.”

Meghna Rajadhyaksha, partner of law firm Shardul Amarchand Mangaldas representing SBI, argued that this seems to be just delaying tactics by the debtor. He said “The name of the investor is not mentioned in the letter sent by the Turkish bank to the SBI chairman. The offer can be taken up to the (RP) as well once the company is admitted under the insolvency process for resolution.”

Uttam Value Steel and Uttam Galva Metallics owe banks INR 3,200 crore and INR 2,200 crore, respectively.

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.

Source : Mint

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