Bhushan Power: Final call on second round of bids on Tuesday

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New Delhi | Published: May 1, 2018 4:34:30 AM

The committee of creditors (CoC) for Bhushan Power and Steel are in the process of deciding whether to go for a second round of bidding or not. Sources said that after the voting process initiated by the resolution professional (RP) concludes on Tuesday, a final decision in this regard will emerge.

Bhushan Power, COC, bidding, resolution professional NCLT, liberty house, punjab national bank, PNB, tata steel, JSW steelBhushan Power and Steel was among the 12 non-performing assets the Reserve Bank had referred for insolvency proceedings in June last year. (IE)

The committee of creditors (CoC) for Bhushan Power and Steel are in the process of deciding whether to go for a second round of bidding or not. Sources said that after the voting process initiated by the resolution professional (RP) concludes on Tuesday, a final decision in this regard will emerge. The race for the bankrupt company had taken a turn on April 23 when the National Company Law Tribunal (NCLT) asked its lenders led by Punjab National Bank to consider the late bid submitted by UK-based Liberty House.

Liberty House had, on February 26, challenged the rejection of its bid by the RP on the grounds it had been submitted late. The two bidders who had submitted their bids within the deadline of February 8 were Tata Steel and JSW Steel. So far these two steelmakers have not challenged the order. Bhushan Power and Steel owed lenders close to Rs 47,000 crore as on March 31, 2017.

In its order, the NCLT had said that the bid by Liberty House could not be disqualified only on the grounds that it had been submitted after the deadline. “Resolution plan of the Liberty House shall not be rejected on the ground of delay emanating from process document or any other document internally circulated by the RP or the CoC. The rejection shall be on some substantive ground as against flimsy one,” the bench had said. The tribunal had directed the CoC to complete its resolution proceedings by June 23.

The bench’s order had noted that since the resolution plan is under consideration and yet to be decided by the CoC, there is still considerable time left for completion of resolution process. Bhushan Power and Steel was among the 12 non-performing assets the Reserve Bank had referred for insolvency proceedings in June last year.

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