UK creditor asks court to scrap Pramod Mittal’s offer – Times of India

The single creditor which made steel magnate billionaire Laskhmi Mittal’s brother Pramod Mittal bankrupt in Britain, Moorgate Industries UK (Moorgate), on Monday challenged Mittal’s IVA (individual voluntary arrangement) in the London high court. It is calling for a court order that the IVA — which was approved by a majority of creditors — be revoked. If the insolvency and companies court (ICC) grants the order, Pramod (64) will revert to being bankrupt, meaning a bankruptcy trustee will have wider powers of investigation into his assets globally.
Pramod owes Moorgate 140 million pounds (Rs 1,375 crore) debt plus interest but under the terms of the IVA he only has to pay Moorgate back 266,000 pounds (Rs 261 lakh). The IVA was approved by 75% of the value of the creditors at a creditors’ meeting on October 26. Moorgate voted against the IVA. Moorgate is seeking a court order that the IVA be revoked either on the basis of “material irregularities” or on the basis that the creditors who approved it, did so “in bad faith”, the court heard. According to the IVA, Mittal owes 20 unsecured creditors 2.5 billion pounds (Rs 24,500 crore). The creditors include his wife Sangeeta, son Divyesh, father Mohan Lal and nephew Amit Lohia.
Moorgate’s barrister Joseph Curl told the court that “the trigger for the IVA appears to have been the bankruptcy trustee pressing Pramod to deliver up electronic devices and documents” and then all these creditor claims — “came out of the woodwork” — which are “seriously dubious” and “relying on obviously uncommercial debts” and have not been through any judicial determination. He alleged the IVA had been procured to “stymie the bankruptcy powers of investigation.”
“The IVA was done so he could avoid delivering up electronic devices and documents so the legitimate creditors like my client don’t have access to the documents we need,” Curl said.

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