Global Steel Holdings settles State Trading Corporation's Rs 2,210-cr claim

UK-based Global Steel Holdings Ltd Tuesday said an amount of Rs 2,210 crore has been paid to State Trading Corporation (STC) of India Limited.

Government-owned STC is a premier international trading company engaged primarily in exports, and imports operations.

Pursuant to a court order, an amount of Rs 2,210 crore has been paid to STC and no amount is due, Global Steel Holdings Ltd said in a statement issued here.

According to the statement, Global Steel Holdings Ltd (GSHL), Global Steel Philippines Inc (GSPI) and the State Trading Corporation of India Limited (STC) had a long-standing and successful business relationship since September 2003.

Due to an unprecedented meltdown in the steel industry and depression in the world economy during 2008-2010, GSPI suffered huge losses, and consequently, a substantial amount became due and payable by GSPI to STC, it said.

"Pursuant to conciliation proceedings between GSHL, GSPI and STC, a sum of Rs 1,605 crore, inclusive of principal and interest at a rate of 13.5 per cent per annum on USD bench mark rates, was awarded to STC and was to be paid by GSHL/GSPI as principal debtors and Pramod Mittal as a guarantor. STC had filed and/or caused to be filed diverse proceedings against GSHL, GSPI, Pramod Mittal and others in order to recover such sum.

"Pramod Mittal has paid and /or caused to be paid an aggregate sum of Rs 2,210 crore to STC, inclusive of the aforesaid Rs 1,605 crore as well as post award interest, in full and final settlement of STC's claim," it said.

Now, no amount is due and payable to STC by GSHL, GSPI or Pramod Mittal, it added.