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Nithia Capital & CarVal to Close Uttam Value & Metallics Deal in October

Steel News - Published on Thu, 15 Oct 2020

Image Source: Uttam Value Uttam Metallics
Economic Times reported that UK based alternative investment manager Nithia Capital expects to close the acquisition of Uttam Value Steels and Uttam Galva Metallics by the end of October and has identified senior management personnel to run the companies. Nithia Capital founder Mr Jai Saraf told ET “We are making full efforts to close the transaction by the end of this month. Once we close the transaction, our new team will go in. We have identified senior management personnel and they are ready to go in.”

In May 2019, a lenders' consortium led by SBI had initiated insolvency proceedings against two distressed entities of Uttam Galva Steels. The National Company Law Tribunal then approved the CarVal Investors and Nithia Capital Resources Advisors LLP-led consortium’s resolution plan for acquisition of the assets. As per NCLT’s order, Nithia and CarVal were to pay upfront and a contingent payment of INR 1,078 crore for Uttam Value Steels and another INR 1,576 crore for Uttam Metallics. On May 6 this year, a monitoring agency was formed, in which successful resolution applicants Nithia and CarVal along with two members from the bank and one independent member were made responsible for operating the plants.

Uttam Value Steels is an integrated steelmaking company that produces hot rolled coils, cold rolled coils, galvanised coils and sheets and colour-coated products, among other products, with a total capacity of 1 million tonnes per annum.

Uttam Galva Metallics is an unlisted entity that manufactures hot metal/pig iron and has an iron making capacity of 0.60 million tonnes per annum at Wardha, Maharashtra. It is a major supplier of hot metal to Uttam Value Steels Ltd.

Economic Times

Source :

Posted By : Yogender Pancholi on Thu, 15 Oct 2020
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