INSUBCONTINENT EXCLUSIVE:
MUMBAI: JSW Steel, Liberty House, SSG Capital Management, and Aion Investments have shown interest in debt-laden Uttam Value Steels and
Uttam Galva Metallics, according to a source aware of the development.
APL Apollo, meanwhile, has shown interest in buying Uttam Value
Steels, the source told ET.
Both target companies are subsidiaries of debt-laden Uttam Galva Steels, promoted by the Miglani family
Uttam Value Steels owes banks Rs 3,200 crore and Uttam Galva Metallics Rs 2,200 crore
Rajiv Chakraborty from PwC is the insolvency resolution professional for both companies that were admitted in the NCLT in June and July,
respectively.
JSW Steel, Aion Investments and Liberty House declined to comment
Mails sent to SSG Capital, APL Apollo and Chakraborty remained unanswered until the publication of this report.
Phoenix ARC, an asset
reconstruction company owned by the Kotak Mahindra group, could not be reached for comments.
Uttam Value Steel (formerly Lloyd's Steel) is
listed on the stock exchange and has a hot-rolled production capacity of 1 MT in Wardha
It buys pig iron from Uttam Galva Metallics, which is privately owned by the group.
State Bank of India (SBI) had initiated insolvency
proceedings against the company in December last year at the Mumbai bench of NCLT and another petition was filed by the bank in the
Chandigarh bench against Uttam Galva Metallics
The company had, however, filed a 'transfer petition' to consolidate both pleas as one for an efficient resolution of the loans since the
companies are integrated facilities
However, both were admitted by the NCLT Mumbai separately.
Uttam Value Steel reported operational revenue of Rs 2,704.2 crore last year,
with a net loss of Rs 467 crore
A source close to JSW Steel said that the steelmaker is erring on the side of caution by submitting EoIs after their sour experience with
Essar Steel and Electrosteel.
