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Banks approve CarVal’s resolution plan for steel assets of Uttam Galva - Report

Steel News - Published on Tue, 23 Apr 2019

Image Source: SteelGuru
ET, citing 2 people aware of the resolution plan, reported that lenders to the distressed steel assets of Uttam Value Steels and Uttam Galva Metallics on Sunday approved a INR 2:400 crore resolution package in a staggered payment plan that requires banks to take haircuts of more than 60% on the loans. The sources said “The offer includes equity commitment of INR 100 crore. Of the total amount about INR 650 crore will be paid immediately, with the remaining spread over the next 5-6 years.”

ET report added “The resolution professional, Mr Rajiv Chakraborty of PwC, now has until May 7 to get the plan of CarVal Investors and Asset Reconstruction Company of India (Arcil) approved by the dedicated bankruptcy court.”

Focused on distressed and credit-intensive assets, CarVal is the investment arm of food and agriculture conglomerate Cargill.

A consortium of lenders, led by State Bank of India, has INR 6,113 crore of loans outstanding in these two accounts. Other banks with significant exposure to the assets include Punjab National Bank, Canara Bank and Andhra Bank

JSW Steel and Liberty House had earlier sought to invest in these assets. However, final bids came in only from CarVal and another consortium led by SSG Capital Management.

The assets, which are associate companies of Uttam Galva Steels, comprise one million tonne hot-rolled production capacity of Uttam Value Steels at Wardha in Maharashtra, for which the former purchases pig iron from Uttam Galva Metallics.

Source :

Posted By : Sanju Moirangthem on Tue, 23 Apr 2019
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