Pramod Mittal, the younger brother of the world’s richest steel tycoon Lakshmi Mittal declared bankrupt by the UK court in June.
Pramod was made bankrupt by the insolvency and companies list on 23rd June after a bankruptcy petition was filed against him by Moorgate Industries (UK) Ltd.
Despite Lakshmi Mittal being the 10th richest man in India, worth $10.3 Billion, and ranked 91 amongst the world’s richest man. Pramod failed to settle a judgment debt of $166 Million against him in the commercial court of the high court.
Pramod, who lives near Hyde Park, had sought to adjourn the hearing by several weeks to give him time to settle the debt. He had claimed he might be set to benefit from a payout of tens of millions from a Nigerian dispute that has been going on since 2008. That dispute involves GN, 75% of which is owned by a Mittal family trust.
According to him, GN had agreed to make a settlement payment to Moorgate out of whatever money it receives from the mediation provided he had not been made bankrupt and provided that Moorgate agreed to accept the sum in full and final settlement of the petition debt, and all other claims it may have against him. Moorgate was invited to sign a confidentiality agreement as a prerequisite to receiving more information about the mediation. Moorgate failed to respond.
Pramod also used the example of Vijay Mallya, who is also subject to a bankruptcy petition brought by a consortium of Indian Banks.