A day after the National Company Law Tribunal (NCLT) accorded approval to Tata Steel’s resolution plan for taking over Bhushan Steel, one of the promoters of the bankrupt firm moved the appellate tribunal challenging the NCLT order. The National Company Law Appellate Tribunal (NCLAT) has listed the matter for hearing on Thursday. Bhushan Steel has 5.6 million tonnes per annum steel-making capacity.
Neeraj Singal, the aggrieved promoter, had 22% stake in the company, as on March, 2018. Along with Neeraj, the Singal family had a cumulative 43.9% shareholding while the remaining was with the public.
Bhushan Steel owed Rs 56,080 crore to the financial creditors and Rs 1,332 crore to the operational creditors. Tata Steel has offered to pay Rs 35,200 crore to the financial creditors and Rs 1,200 crore to the operational creditors. Tata Steel will also offer 12.27% equity to the financial creditors. This can go up to 13.43% in the event of Sebi not allowing the erstwhile existing promoter group shareholding to be counted towards public shareholding.
Tata Steel has also offered to pay Rs 0.56 crore towards employees’ dues. It will retain all employees on-roll. The overall plan retrieves 67% of the NPAs. As much as 99.8% of the lenders approved Tata Steel’s resolution plan. The Competition Commission has already approved the proposed acquisition.
Bhushan Steel was admitted by the insolvency court on July 26 last year under section 7 of the Insolvency and Bankruptcy Code (IBC) on State Bank of India’s plea.