1 April 2019: The bankruptcy court on Monday allowed an extension of 20 days for the resolution of the twin stressed assets of Uttam Value Steels and Uttam Galva Metallics.
The 270-day resolution deadline for the companies is to expire this Wednesday, with lenders still to take a final call on the two bids that have come in. The assets have received bids from a consortium led by CarVal and another led by SSG Capital Management. CarVal has bid along with Asset Reconstruction of India and offered to pay around Rs 1,900 crore, including an upfront payment of Rs 800 crore for both assets that together owe Rs 5,500 crore for lenders.
The SSG Capital consortium sweetened its earlier bid to Rs 1,000 crore, of which it is willing to make an upfront payment of 33%. The lenders are still to take a final call on the bids. The National Company Law Tribunal has said that that the decision regarding making a consolidated bid for both companies can be taken by the committee of creditors. Both the consortiums have made bids for both companies as they have integrated functions.
The assets, which are 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. Once acquired, the plants could be brought to their full utilisation within six months, a person close to the companies said.