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Last Updated : May 08, 2019 08:03 PM IST | Source: PTI

SSG Capital challenges Cargil arm's offer for Uttam Galva cos

SSG Capital counsel told the NCLT that the lenders rejected their revised bid without offering any reason and that its resolution plan of Rs 4,506 crore offered Rs 1,000 crore upfront.

Representative Image
Representative Image

Hong Kong-based asset management fund SSG Capital May 8 challenged the lenders' decision to go ahead with a Rs 2,500-crore offer from CarVal Investors, an arm of the US-based agri major Cargill, for both Uttam Value Steels and Uttam Galva Metallics.

SSG Capital counsel told the NCLT that the lenders rejected their revised bid without offering any reason and that its resolution plan of Rs 4,506 crore offered Rs 1,000 crore upfront.

The lenders have already approved CarVal-led consortium's resolution plan with 84 percent votes, which though is only around half the counter offer by the HK fund.

CarVal Investors offers an upfront payment of Rs 625 crore and another unconditional Rs 1,200 crore over five years to lenders. The remaining amount will be paid out of the company's earnings as well as receivables due to the company.

The lenders had allowed the combined bid for Uttam Value Steels and Uttam Galva Metallics which have a aggregate debt of Rs 5,500 crore.

A tribunal bench of MK Shrawat asked both SSG and the RP to file applications in this regard by May 21 when the matter will be heard again.

The assets, which are of associate companies of Uttam Galva Steels, comprise 1 million tonne hot-rolled production capacity of Uttam Value Steels at Wardha in Maharashtra for which it purchases pig iron from Uttam Galva Metallics.
First Published on May 8, 2019 08:01 pm
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