IRP will now continue to manage NCLTLTT and take over Uttam Galva management.

Mumbai: The National Company Court (NCLT) on Thursday recognized the insolvency case of debt-laden Uttam Galva Steels Ltd (UGSL) after financial creditor State Bank of India filed a bankruptcy petition in the National Company Court. Uttam Galva Steel A lawyer representing the company said that the company is one of them.

UGSL is one of the companies in the Reserve Bank of India’s second list of loan defaulters and has been directed to take immediate corrective action. /p20 In early April 20, it was reported that UGSL had defaulted on Rs 100 crore of debt to over 60 lenders due to a virus epidemic. UGSL also stated that due to the embargo, the company had shut down its factories and operations and was yet to repay its creditors Rs 10.08 billion. The company posted a net loss of Rs 1,600 crore for the second quarter.

State Bank of India, Deutsche Bank, Oriental Bank of Commerce, Indian Overseas Bank and Vijaya Bank are the major lenders to the company. The lenders have advised Ajay Joshi to act as an Interim Resolution (IRP) for experts during the insolvency process.

Earlier in January, Deutsche Bank filed a bankruptcy petition with NCLT against UGSL seeking recovery of 20,000 bankruptcy petitions $10,000 dues.

In 2018, SBI filed a bankruptcy petition against UGSL, but the lender withdrew the petition after ArcelorMittal, one of the promoters of UGSL, paid over Rs 610 crore to the lender. UGCL ArcelorMittal acquired most of the loans, which the company acquired in 2018 Every year there are bidders for Essarr’s acquisition of Steel.

The loan is underwritten by ArcelorMittal and pays Rs. 492.22 crore to the secured finance lenders. UGSL includes SBI and the overdue principal amount was transferred to ArcelorMittal India.

NCLT Now we will continue to work with the IRP Collaboration to take over the management of Uttam Galva. Resolution professionals can proceed under the Committee of Creditors. (COC) to continue or be dismissed at their will. Under the Indian Bankruptcy Code, the resolution must be completed within days from 1800 days from the date of filing of the petition and this period can be extended from 90 years starting days to 270 days.

The company’s two other subsidiaries, Uttam Galva Metallics and Uttam Value Steel Carval, are already in resolution Investors expects that the leading consortium will be 260 to complete the acquisition of the two companies for Rs 100 crore.