ET: Uttam Value Steels & Galva Metallics get new bids from CarVal consortium

23 March 2019: The twin distressed assets of Uttam Value Steels and Uttam Galva Metallics have received a fresh bid from a consortium led by CarVal Investors, even as SSG Capital Management sweetened its offer, a person close to the lenders to the companies said.

CarVal Investors, the investment arm of US-based agri group Cargill, has bid for the assets along with Asset Reconstruction Company (India) Ltd (Arcil).

The consortium has offered about Rs 2,000 crore, including an upfront payment of Rs 800 crore, for the two companies that together owe Rs 5,500 to banks.

SSG Capital Management, which had bid in the first round as well, has increased its offer from a total of Rs 850 crore to Rs 1,000 crore, out of which it is willing to pay 33% upfront, the person said.

Lenders are going through the bids and will take a call next week, said the person. If the lenders accept the offer given by CarVal, they will have to take a haircut of about 63%.

Some foreign investors have also shown interest in the assets, he said.

The resolution professional for the assets, Rajiv Chakraborty of PwC, didn’t respond to an email seeking comment until press time Friday.

The assets, which are associate companies of Uttam Galva Steels, comprise 1-milliontonne hot-rolled production capacity of Uttam Value Steels at Wardha in Maharashtra for which it purchases pig iron from Uttam Galva Metallics. Once acquired, the plants could be brought to their full utilisation within six months, a person close to the companies said.

The Economic Times reported



Categories: General News, India Bankruptcy

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