Uttam Galva Lenders Jittery Over Essar Steel Litigation Delays - Report

- Aug 08, 2018-

Business Standard, citing bankers, reported that worried over an inordinate delay in the resolution of Essar Steel’s debt, Indian lenders are taking legal opinion on how to settle the INR 60 billion debt of Uttam Galva Steels Limited. According to a source close to the development, banks don’t want to wait indefinitely for the resolution of UGSL as the Essar Steel case is expected to be appealed before the Supreme Court by both or either of the bidders, Numetal Mauritius and ArcelorMittal, if their bids are rejected by the NCLAT.

A banker is quoted as saying that “The possibility of an out-of-court settlement is also being discussed to with lawyers to resolve the long-pending cases.’

Insolvency proceeding of UGSL is pending before the National Company Law Tribunal (NCLT) in Mumbai since December last. The delay in UGSL resolution is because ArcelorMittal, a co-promoter till February this year, has promised to repay the debt, provided it wins the race for Essar Steel.

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