SBI suggests Resolution Professional for Uttam Galva Steels

Mumbai: State Bank of India, one of the financial creditors to Uttam Galva Steels, on Thursday submitted its suggestion for an insolvency resolution professional (IRP) for the company to the National Company Law Tribunal.
Uttam Galva Steels was among the companies in the Reserve Bank of India’s second list of loan defaulters and had been directed to come up with immediate corrective action. The lenders took the company to the tribunal to come up with a resolution plan.

Deutsche Bank Singapore had approached the NCLT earlier for a $20-million claim and had submitted its suggestion for an IRP as well. “It is just that apart from Deutsche, all the other lenders are comfortable with the IRP suggested by SBI,” the counsel representing SBI told the tribunal. The other lenders include Bank of Baroda, Vijaya Bank and Dena Bank. SBI had filed an insolvency petition against Mumbai-based Uttam Galva in November 2018 to recover an amount of Rs 6,880 crore.

However, SBI withdrew the claim after ArcelorMittal, then the company’s promoter, cleared its outstanding dues to become eligible to bid for Essar Steel.

The Mumbai bench of the NCLT comprising Bhaskara Pantula Mohan and Rajesh Sharma adjourned the hearing in the case to February 5. The matter will be heard by a new special bench headed by Mohammed Ajmal and Rajesh Sharma.