MUMBAI: Prudent ARC, Asset Reconstruction Company (India) Limited (Arcil), a consortium led by SSG Capital Management and another consortium led by New Zone Intertrade FZE have joined the list of eligible resolution applicants for debt-ridden Uttam Value Steels and
NSE -1.75 % Metallics, said a person aware of the development.
ET had reported on October 12 that JSW Steel, Liberty House, Aion Capital, Phoenix ARC and SSG Capital had submitted expressions of interest (EoIs) for the two subsidiaries of Uttam Galva Steels that owed Rs 3,200 crore and Rs 2,200 crore, respectively, to lenders.
SSG Capital has tied up with Synergy Metals and Mining Fund and ART Special Situations Finance (India) whereas New Zone Intertrade has shown interest along with Glacier Blue and Cheer Keen. Rajeev Chakraborty from PwC is the resolution professional for both companies.
APL Apollo had also submitted an EoI for Uttam Value Steels alone but was not identified as an eligible resolution applicant as it is preferred that a resolution applicant shows interest in both assets owing to their interconnectedness, said people aware of the matter.
Emails sent to Prudent ARC, Arcil, New Zone Intertrade FZE and Rajeev Chakraborty remained unanswered till late evening on Tuesday.
Uttam Value Steels (previously known as Lloyds Steels Industries) is listed on the stock exchange and has a hot-rolled production capacity of 1 MT in Wardha. It buys pig iron from Uttam Galva Metallics, which is privately owned by the group.
The State Bank of India had initiated insolvency proceedings against the company in December last year with the Mumbai bench of the National Company Law Tribunal and another petition was filed by the bank with the Chandigarh bench against Uttam Galva Metallics.
The company had, however, filed a transfer petition to consolidate both pleas as one for an efficient resolution of the loans since the companies are integrated facilities. Although this was not allowed, the pleas were admitted separately by Mumbai bench. Uttam Value Steels reported operational revenue of Rs 2,704.2 crore for 2017-18, with a net loss of Rs 467 crore.