Lakshmi Mittal's brother sued over 'sham' loans to quit bankruptcy

Inauthentic debt worth over £2 billion from "friendly creditors" helped him "swamp" through the required votes from lenders for the payment arrangement, Moorgate's lawyers claim

Former steel magnate Pramod Mittal used “sham” loan agreements with companies he controlled to wriggle out of bankruptcy by paying just a tiny fraction of his debts, a UK firm alleged in a London court. 

Moorgate Industries UK Ltd. is seeking more than £140 million ($161 million) from Mittal, the younger brother of one of the world’s richest men Lakshmi Mittal. Moorgate urged the court to revoke a two-year-old approval to an arrangement that allowed Mittal to pay 0.2% of amounts owed. 

Inauthentic debt worth over £2 billion from “friendly creditors” helped him “swamp” through the required votes from lenders for the