Hong Kong-based asset management fund SSG Capital challenged lenders' decision to go ahead with a Rs 2,500-crore offer from CarVal Investors—an arm of the U.S.-based agri-major Cargill— for both Uttam Value Steels and Uttam Galva Metallics.
SSG Capital counsel told the National Company Law Tribunal that the lenders rejected their revised bid without offering any reason and that its resolution plan of Rs 4,506 crore offered Rs 1,000 crore upfront.
The lenders have already approved CarVal-led consortium's resolution plan with 84 percent votes, which though is only around half the counter offer by the fund.
CarVal Investors offers an upfront payment of Rs 625 crore and another unconditional Rs 1,200 crore over five years to lenders. The remaining amount will be paid out of the company's earnings as well as receivables due to the company.
The lenders had allowed the combined bid for Uttam Value Steels and Uttam Galva Metallics which have an aggregate debt of Rs 5,500 crore.
A tribunal bench of MK Shrawat asked both SSG and the resolution professional to file applications in this regard by May 21 when the matter will be heard again.
The assets, which are of associate companies of Uttam Galva Steels, comprise 1 million tonne hot-rolled production capacity of Uttam Value Steels at Wardha in Maharashtra for which it purchases pig iron from Uttam Galva Metallics.
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