ArcelorMittal has become the sole financial creditor of Uttam Galva after paying off outstanding dues of Rs 7,469 crore (US$1.1 billion) related to both Uttam Galva and KSS Petron in October. Uttam Galva owed lenders Rs 6,880 crore (US$970 million). The payment activity was part of ArcelorMittal’s effort to become eligible to bid for Essar Steel.
ArcelorMittal has recently announced that it is deploying a team of six operationally focused people to begin assisting with the operations at Uttam Galva. The action is viewed as informal as ArcelorMittal is expected to draft a formal plan to take over all elements of Uttam Galva. ArcelorMittal is presently the sole creditor of Uttam Galva, is establishing independent auditors, and is considering whether and how to acquire ownership of Uttam Galva.
Uttam Galva has cold rolling capacity of 1.2 million mt annually.