ArcelorMittal needs lenders' nod on Uttam Galva Steels shares, says SBI

Sale of shares by Mittal violates non-disposal agreement, says the bank

State Bank of India (SBI), the lead banker of Uttam Galva Steels, has informed ArcelorMittal - the co-promoter of the bankrupt company - that its transfer of shares in February this year to the company’s co-promoter, the Miglanis, violated the non-disposal agreement and hence, the shares transferred to the Miglanis will require lenders’ clearance.

SBI has also cautioned the L N Mittal-owned company that the bankruptcy proceedings against Uttam Galva will continue and it cannot be tied to Essar Steel’s debt resolution.

In February this year, ArcelorMittal Netherlands BV sold its 29 per cent stake in Uttam Galva to Miglanis