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Thursday, July 09, 2020

Pramod Mittal, brother of Lakshmi Mittal, declared bankrupt by UK court

Pramod Mittal, brother of steel magnate Lakshmi Mittal, heads the supervisory board and co-owns metallurgical coke producer Global Ispat Koksna Industrija Lukavac (GIKIL) in northern Bosnia, one of the country’s biggest exporters.

By: Express Web Desk | New Delhi | Published: June 30, 2020 2:57:37 pm
Bosnian court detains Indian businessman Pramod Mittal over suspected fraud Pramod Mittal and his two colleagues were arrested and released in Bosnia after paying a hefty €12.5 million in July last year, Reuters had reported. (Reuters/File)

Pramod Mittal, brother of UK-based steel magnate Lakshmi Mittal, has reportedly been declared bankrupt by the Insolvency and Companies Court in London with debts amounting to over £130 million, a report in The Times said.

Mittal heads the supervisory board and co-owns metallurgical coke producer Global Ispat Koksna Industrija Lukavac (GIKIL) in northern Bosnia, one of the country’s biggest exporters. According to The Times report, Mittal’s bankruptcy stems from his acting as a guarantor in 2006 for the debts of the company.

He was pursued by British steel trading and distribution company Stemcor when he did not pay $166 million which was owed in 2013. Stemcor went on to separate its non-trading businesses — which included Mittal’s guarantee — into a separate company, Moorgate Industries, which was granted the bankruptcy order at the Insolvency and Companies Court, the report states.

“Mr Mittal’s bankruptcy represents a significant step forward for Moorgate in what has been a long and arduous process to recover significant monies owed to it by Mr Mittal and several of his connected companies,” Michael Swangard and Duncan Lockhart, lawyers for Moorgate, told The Times.

Mittal’s lawyer, Richard Viegas, told The Times that a ‘complex corporate matrix’ had led to the bankruptcy order and he was pursuing an appeal.

Mittal and his two colleagues were arrested and released in Bosnia after paying a hefty €12.5 million in July last year, Reuters had reported. The release order also mandated an ‘insurance’ of €11 million deposited into a special account until the end of the proceedings.

Mittal had hit global headlines in 2013 when he had splurged over £50 million on his daughter’s wedding.

Back home, the Central Bureau of Investigation (CBI) had registered a case of cheating and corruption against him in 2017 for allegedly causing a loss of Rs 2,112 crore to the State Trading Corporation (STC). Mittal had repaid the loan last year with ‘substantial’ help from his billionaire brother.

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