Bhushan Steel case: NCLAT asks Tata Steel to provide resolution plan details

By: | Published: July 24, 2018 2:22 AM

The National Company Law Appellate Tribunal (NCLAT )on Monday asked Tata Steel to furnish a detailed plan as to how it proposes to distribute the amount earmarked for the operational creditors under its resolution plan for Bhushan Steel.

Hearing a petition filed by Larsen & Toubro (L&T), the appellate tribunal asked Tata Steel to provide the details by Tuesday, when it is scheduled to hear the matter next.

The National Company Law Appellate Tribunal (NCLAT )on Monday asked Tata Steel to furnish a detailed plan as to how it proposes to distribute the amount earmarked for the operational creditors under its resolution plan for Bhushan Steel. Hearing a petition filed by Larsen & Toubro (L&T), the appellate tribunal asked Tata Steel to provide the details by Tuesday, when it is scheduled to hear the matter next.

The engineering and construction major said against dues of Rs 961 crore, the resolution professional has admitted Rs 537 crore. However, Tata Steel’s resolution plan does not specifically mention any amount that would be accrued to L&T. “Of the Rs 1,200 crore Tata Steel had set aside for operational creditors, Rs 200 crore would be given on priority. The remaining amount would be given on absolute discretion basis. We are in the dark,” L&T’s counsel said.

Tata Steel, which has already emerged as the highest bidder and deposited Rs 35,200 crore to the financial creditors of the debt-ridden firm, had earlier said it would pay Rs 1,200 crore to operational creditors over a period of 12 months. L&T had earlier moved the National Company Law Tribunal (NCLT) seeking to be declared a secured creditor so that it gets higher priority in repayment of dues. The tribunal had, however, rejected its claim. Subsequently, it moved the National Company Law Appellate Tribunal.

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