NCLT okays Tatas' bid for Bhushan Steel
New Delhi: National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel's bid of Rs 32,500 crore, along with 12.27 per cent equity to creditors, for the debt ridden Bhushan Steel Ltd (BSL).
The tribunal accepted the plan filed by BSL's resolution professional (RP), which was approved by the Committee of Creditors (CoC) lead by SBI, after finding Tata Steel as the highest bidder.
"The application filed by the RP for accepting the resolution plan approved by the CoC submitted by resolution applicant Tata Steel Ltd is accepted," said a two member bench comprising NCLT President Justice M M Kumar and S K Mohapatra.
The tribunal also gave approval for the appointment of a monitoring agency for the deal.
NCLT, in its 85-page order, has also directed BSL's ex-management to cooperate with the monitoring agency during the implementation of the resolution plan and granted it liberty to approach it during the process.
"Liberty is grated to the monitoring agency to apply for any further direction against the ex-management, its directors or any other officers, if such necessity arrives," said NCLT.
BSL had a debt of Rs 56,080 crore from 53 financial creditors and Rs 2,846 crore from 751 operational creditors, which also include workmen, employee and statutory creditors. It had a liquidation value of Rs 14,541 crore.
The CoC had selected Tata Steel, which had offered Rs 32,500 crore as upfront payment along with 12.27 per cent equity in BSL to the creditors.
However, this was challenged by some BSL employees contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC), which was dismissed by NCLT.
The tribunal said the plea "filed by Bhushan employees is also dismissed with cost of Rs 1 lakh to be paid by Rahul Sengupta personally. The cost be deposited in the account of corporate debtor (BSL)".