New York-based investor group CarVal plans to complete the acquisition of Uttam Value Steel and Uttam Galva Metallics in the next 30 days, according to local media. CarVal along with London-based venture capitalist Nithia Capital Resources had filed a resolution plan for these companies under India’s bankruptcy law.
On Sep 10, India’s National Company Law Tribunal (NCLAT) dismissed plea challenging CarVal’s resolution plan for Uttam Value Steels under the Insolvency and Bankruptcy Code. In May, NCLT approved the sale of Uttam Value Steel and Uttam Galva Metallics to a joint venture formed by CarVal and Nithia Capital, who placed the highest bid of Rs23bn ($303mn) of the assets.
Industry experts had expected CarVal to backtrack and renegotiate the deal price given the uncertainties brought in by the COVID-19 pandemic.
Uttam Value Steel has hot-rolled steel output of around 1mn mt in Wardha, Maharashtra. The plant is located in a coal belt. Its blast furnace consumes DRI and injection coal.