India's bankruptcy court approves ArcelorMittal arm's resolution plan for Uttam Galva Steels

The ArcelorMittal Group on Friday added another steel company to its portfolio. The Mumbai bench of National Company Law Tribunal (NCLT) approved the resolution plan submitted by an Indian arm of the global steel company ArcelorMittal for debt-laden Uttam Galva Steels Ltd.

Uttam Galva Steels was put under the 'Corporate Insolvency Resolution Process (CIRP)' on an application made by the State Bank of India SBI for not repaying its debts.

Under the Insolvency and Bankruptcy Code (IBC), a resolution professional was appointed, and a committee of creditors (CoC) was created for undertaking the 'CIRP' of Uttam Galva Steels.

Later, the creditors' committee, in complete majority, voted in favour of the resolution plan submitted by the ArcelorMittal.

Then, the resolution professional filed an application for approval of the same before the bankruptcy court.

The NCLT approved the resolution plan submitted by the ArcelorMittal group without any changes or amendments, and rejected all challenges.

The decision paved the way for the acquisition of UGSL by the ArcelorMittal.

This is ArcelorMittal’s third purchase through the insolvency process in India after Essar Steel and Odisha Slurry Pipeline Infrastructure.

ArcelorMittal and Nippon Steel plans to invest Rs 41,000 crore ($5 billion) to boost crude steel output capacity by 6 million tonnes a year at its Hazira plant in Gujarat.

The joint venture would build two blast furnaces, along with many other facilities, with plans to start operations by mid-2026.

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