Banks approve resolution plan for Uttam Galva
Lenders to the distressed steel assets of Uttam Value Steels and Uttam GalvaMetallics on Sunday approved aRs 2,400-crore resolution package in a staggered payment plan that requires banks to take haircuts of more than 60% on the loans.
Two people aware of the resolution plan said the offer includes equity commitment of Rs 100 crore. Of the total amount, about Rs 650 crore will be paid immediately, with the remaining spread over the next five-six years, said one of the executives aware of the payment plans.
A consortium of lenders, led by State Bank of India (SBI), has Rs 6,113 crore of loans outstanding in these two accounts. Other banks with significant exposure to the assets include Punjab National Bank, Canara Bank and Andhra Bank.