Lenders to the Bhushan Power and Steel (BPSL) are likely to meet next week to choose the most eligible bidder for the troubled steelmaker. Sources said BPSL’s resolution professional (RP) Mahender Kumar Khandelwal has now asked, after the lenders said no to a second round of bidding, investment banker SBI Capital Markets to evaluate the three bids from Liberty House, Tata Steel and JSW Steel. The idea is to help the committee of creditors to take an appropriate “commercial decision.”
As per the rule, once the CoC clears a resolution plan, the RP needs to submit the proposal to NCLT and other statutory authorities for approval. In the BPSL matter, NCLT excluded 60 days from the statutory 270-day deadline for the resolution process to be completed as the tribunal took nearly 60 days to decide on Liberty House’s plea challenging RP’s rejection of its bid. The deadline will expire on June 23.
However, speculations are rife that Tata Steel might move to National Company Law Appellate Tribunal (NCLAT), challenging National Company Law Tribunal’s April 23 order that directed the CoC to consider the late bid submitted by the UK-based Liberty House for the floundering steel-maker. The direction followed Liberty House’s challenge of the rejection of its bid by the RP on the grounds that it was submitted post-deadline.
If the Tatas actually move NCLAT, it may possibly delay the resolution process further, sources said. Earlier in the week, the NCLAT ordered that status quo be maintained with regard to the implementation of Vadanta’s resolution plan for Electrosteel Steels till the appellate tribunal disposed of a plea by Renaissance Steel India Pvt Ltd (RSIPL), challenging the NCLT-Kolkata order that approved Vedant’s plan.
A similar situation could also emerge in the BPSL case, sources said.