ArcelorMittal Group added another steel company to its portfolio on Friday. The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by an Indian branch of global steel company ArcelorMittal for Uttam Galva Steels Ltd.
Uttam Galva Steels has been placed under “Corporate Insolvency Resolution Process (CIRP)” on a request made by the State Bank of India SBI for failing to repay its debts.
Under the Insolvency and Bankruptcy Code (IBC), a Resolution Professional has been appointed and a Creditors’ Committee (CoC) has been established to undertake the “CIRP” of Uttam Galva Steels.
Later, the creditors’ committee, with a complete majority, voted in favor of the resolution plan presented by ArcelorMittal.
Then, the resolution professional filed an application for approval of the same in the bankruptcy court.
The NCLT approved the resolution plan submitted by ArcelorMittal Group without any changes or amendments, and dismissed all challenges.
The decision paved the way for the acquisition of UGSL by ArcelorMittal.
This is ArcelorMittal’s third purchase in the insolvency proceedings in India after Essar Steel and Odisha Slurry Pipeline Infrastructure.
ArcelorMittal and Nippon Steel plan to invest 41,000 crore ($5 billion) to increase crude steel production capacity by 6 million tonnes per year at its Hazira plant in Gujarat.
The joint venture would build two blast furnaces, along with numerous other facilities, with plans to start operations by mid-2026.
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