State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Uttam Galva Steel Limited, alleging default in payment of a financial debt. The petitioner had granted an external commercial borrowing facility to the respondent. A previous CIRP application was withdrawn following a settlement involving ArcelorMittal. After the settlement, the respondent continued to default on its obligations.
State Bank of India (SBI) granted Uttam Galva Steel Limited an external commercial borrowing (ECB) facility of US$50 million under a Foreign Currency Facility Agreement dated 2013-05-17. The ECB facility was secured by the respondent's assets and carried an interest rate of 14.85%. The respondent defaulted, leading SBI to file a Section 7 petition under the Insolvency and Bankruptcy Code (IBC) in 2017. This initial CIRP application was withdrawn after ArcelorMittal settled a portion of the debt, reducing the outstanding amount to US$25 million. The respondent again defaulted on 2019-11-29, owing US$6,674,943.46. SBI sent reminder letters, but the respondent expressed inability to pay. As of 2020-03-06, the total outstanding ECB debt was US$14,618,636.76 (INR
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State Bank of India and Uttam Galva Steel…
State Bank of India filed a Section 7 petition…
State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Uttam Galva Steel Limited, alleging default in payment of a financial debt. The petitioner had granted an external commercial borrowing facility to the respondent. A previous CIRP application was withdrawn following a settlement involving ArcelorMittal. After the settlement, the respondent continued to default on its obligations.
State Bank of India (SBI) granted Uttam Galva Steel Limited an external commercial borrowing (ECB) facility of US$50 million under a Foreign Currency Facility Agreement dated 2013-05-17. The ECB facility was secured by the respondent's assets and carried an interest rate of 14.85%. The respondent defaulted, leading SBI to file a Section 7 petition under the Insolvency and Bankruptcy Code (IBC) in 2017. This initial CIRP application was withdrawn after ArcelorMittal settled a portion of the debt, reducing the outstanding amount to US$25 million. The respondent again defaulted on 2019-11-29, owing US$6,674,943.46. SBI sent reminder letters, but the respondent expressed inability to pay. As of 2020-03-06, the total outstanding ECB debt was US$14,618,636.76 (INR
…State Bank of India and Uttam Galva Steel…
State Bank of India filed a Section 7 petition…