Uttam Galva IBC proceedings: NCLT awaits ruling on ArcelorMittal bid

The National Company Law Tribunal (NCLT) adjourned the hearing of insolvent firm Uttam Galva Steels (UGSL) till August 13, saying it was waiting for the National Company Law and Appellate Tribunal’s (NCLAT’s) verdict on ArcelorMittal's eligibility to bid for another stressed corporate, Essar Steel. 

The point of contention that has come up at both the NCLAT and NCLT is whether ArcelorMittal can bid for Essar Steel as it holds significant stakes in other stressed companies. ArcelorMittal was an investor in UGSL with a 29.05 per cent stake, but it transferred the shares inter se to the promoter group to make itself