Uttam Galva defaults on Rs 664-cr loan; ArcelorMittal, SBI among creditors

The coronavirus (Covid-19) pandemic and the resultant shutdown have started impacting companies with Uttam Galva Steels (UGSL) defaulting Rs 664 crore to its lenders. Apart from state-owned banks, ArcelorMittal is one of the top creditors of the company.

UGSL, which shut its plants and operations after the lockdown was announced last month, said it has an outstanding of Rs 1,008 crore to its creditors. A company source said the default is “technical in nature” and blamed the ongoing lockdown for it. Operations had to be shut after it was unable to procure raw materials from suppliers due to the lockdown, said