CoC went against NCLAT order by allowing JSW Steel to change plan parameters, says Tata Steel

By: | Published: September 7, 2018 4:07 AM

Tata Steel on Thursday alleged before the National Company Law Appellate Tribunal (NCLAT) that the committee of creditors went against its interim order by allowing JSW Steel to change the basic parameters of its already submitted resolution plan in the case of Bhushan Power and Steel.

tata steel. steel sector, steel industryJSW Steel’s cumulative bid was higher by Rs 2,700 crore than that of Tata Steel and better by Rs 850 crore compared with the UK-based Liberty House’s cumulative offer of Rs 18,850 crore.

Tata Steel on Thursday alleged before the National Company Law Appellate Tribunal (NCLAT) that the committee of creditors went against its interim order by allowing JSW Steel to change the basic parameters of its already submitted resolution plan in the case of Bhushan Power and Steel. It said that the August 6 order of the appellate tribunal, while allowing a revised plan to be submitted by the bidders in fray for the bankrupt company, had said that the basic parameters should not be changed.

Senior counsel Abhishek Manu Singhvi, appearing on behalf of Tata Steel, said following the appellate tribunal’s August 6 order, Tata Steel only filed an ‘additional plan’. However, at the time of CoC meeting, held on August 14, while Tata Steel was called for explanation only, the CoC allowed JSW to change basic parameters of its resolution plans.

The two-member NCLAT bench, headed by its chairperson Justice S J Mukhopadhaya, asked all concerned to submit their replies within a week and posted the matter for further hearing on September, 24.
Sources said BPSL lenders have zeroed in on JSW Steel as the most preferred bidder to take over the debt-hit firm. The Sajjan Jindal-led firm has offered to pay Rs 19,350 crore to the lenders against their total outstanding of Rs 47,000 crore and Rs 350 crore to the operational creditors in lieu of their admitted claims of Rs 700 crore.

JSW Steel’s cumulative bid was higher by Rs 2,700 crore than that of Tata Steel and better by Rs 850 crore compared with the UK-based Liberty House’s cumulative offer of Rs 18,850 crore. BPSL owed lenders, led by Punjab National Bank, Rs 47,000 crore.

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