Uttam Galva clarifies on one-time settlement offer

Uttam Galva has informed the exchanges that it has indeed made a preliminary one-time settlement offer to payback 100 per cent of its dues to all of its lenders. This is the company’s second out of court settlement offer after the banks refused to accept a steep haircut, when the company offered to payback only 51 per cent of its dues.

Uttam Galva owes various banks around Rs. 52 billion. The company expects to receive help from overseas investors and has asked the NCLT for some time to arrange for the same. But the lenders have yet to accept the same and if approved the final terms of the settlement will be decided by the various stakeholders, the company said in a filing on Tuesday.

In February, ArcelorMittal exited his stakes in Uttam Galva in order to qualify to bid for the distressed assets of Essar Steel. A group company of Uttam Galva, Sainath Trading Company Limited, bought the entire 5 per cent owned by ArcelorMittal Netherlands BV.

SBI, Union Bank, Bank of Baroda, Punjab National Bank, IDBI and ICICI Bank are some of the prime lenders of the company. The company was listed in RBI’s second list of defaulters. SBI has filed the bankruptcy case against Uttam Galva.

At 14:04 hours on Wednesday, the stock of Uttam Galva was stuck in lower circuit at Rs. 14.60 per share, down by 4.89 per cent on BSE.