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State Bank of India on Thursday filed an application with the National Company Law Tribunal (NCLT) to withdraw insolvency proceedings against Uttam Galva Steels, as ArcelorMittal has repaid the defaulted amount.
To make itself eligible as a bidder for Essar Steel, ArcelorMittal had offered to pay ₹7,469 crore to clear the dues of Uttam Galva and KSS Petron, in which it had held minor shareholdings earlier.
Having divested its stake completely in both the companies, it is not yet clear how ArcelorMittal will regain control in both the distressed assets, said sources who confirmed the development.
Uttam Galva, owned by the Miglani family, specialises in cold rolled steel and has an annual capacity of 1.2 million tonnes.
A clutch of 18 banks led by SBI had lent ₹6,000 crore to Uttam Galva, and dragged it to the NCLT after it defaulted on its loan last year.
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