NCLAT extends deadline for submission of revised bid for Bhushan Power & Steel

By: | Published: August 6, 2018 1:49 PM

The National Company Law Appellate Tribunal (NCLAT) today extended the deadline for submission of revised bids for debt-ridden Bhushan Power and Steel by one week on the plea of Tata Steel, a resolution applicant in this.

NCLAT, Liberty House, Bhushan Steel, Bhushan Steel lenders, Bhushan Power & SteelHowever, NCLAT’s August 1 order was challenged by Tata Steel before the Supreme Court last week, opposing the revision of the offer.

The National Company Law Appellate Tribunal (NCLAT) today extended the deadline for submission of revised bids for debt-ridden Bhushan Power and Steel by one week on the plea of Tata Steel, a resolution applicant in this. Modifying its earlier order, the appellate tribunal has now said all three bidder — Tata Steel, Liberty House and JSW — may file their revised offers by August 13 for Bhushan Power and Steel Ltd (BPSL). Earlier, on August 1, an NCLAT bench headed by Chairman Justice S J Mukhopadhaya had allowed all three bidders to file revised offers by August 6.

However, NCLAT’s August 1 order was challenged by Tata Steel before the Supreme Court last week, opposing the revision of the offer. The Tata Group company was picked as the highest bidder for BPSL a day before that on July 31. During the proceedings of NCLAT, counsel appearing for Tata Steel submitted that as its appeal against the August 1 order is expected to be heard by the Apex Court on Friday this week and requested to extend the time line for submission of the revised bids.

According to them, if Committee of Creditors (CoC) take a decision based on the revised offers, then their position may be altered. Following this, NCLAT extended the time line for a week. The NCLAT last month had vacated its stay and asked the CoC to consider resolution plans submitted by three firms — Tata Steel, Liberty House and JSW Steel. The tribunal on July 20 gave a go-ahead to the CoC meeting, directing it to finalise a bid for the company.

However, JSW Steel revised up its offer from Rs 11,000 crore to Rs 18,000 crore ahead of the CoC meeting. Tata Steel put in a bid of Rs 17,000 crore. Bhushan Power and Steel owes about Rs 45,000 crore to its lenders.

NCLAT had also directed the CoC to call all the three bidders, along with operational creditors and suspended board of directors, in the meeting. Earlier on July 17, the NCLAT had stayed the meeting of CoC when they were going to vote for finalisation of the highest bidder (H1) for BPSL. Bhushan Steel and Power was among the 12 non-performing accounts referred by RBI for NCLT proceedings.

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