Uttam Galva Steels Ltd on Saturday said it has received approvals from the National Stock Exchange and BSE Ltd for declassification of ArcelorMittal Netherlands B.V. as a promoter of the company.
Following this declassification, ArcelorMittal Netherlands B.V., whose bid for Essar Steel was rejected by the Resolution Professional under Section 29A of the Insolvency and Bankruptcy Code as it had a stake in Uttam Galva Steel (which was classified as a non-performing asset by banks and referred to the National Company Law Tribunal), now becomes eligible to re-bid for Essar Steel.
Last month, ArcelorMittal Netherlands B.V. transferred its entire shareholding (4,13,27,931 equity shares) in Uttam Galva Steel to Sainath Trading Company Pvt Ltd by way of inter-se transfer. Uttam Galva Steel had informed the exchanges about this transaction on February 7.
Under Section 29A of IBC, a person is not eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person is - an undischarged insolvent; a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949; has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor. ArcelorMittal Netherlands B.V. is the world’s leading steel and mining company. It is present in 60 countries and has an industrial footprint in 18 countries.
ramkumar.k@thehindu.co.in