NCLT approves Tata Steel bid for Bhushan Steel

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New Delhi | Published: May 15, 2018 12:49:03 PM

However, some employees of Bhushan Steel had challenged it before NCLT contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

NCLT, tata steel bid, bhushan steel, CoC, IBCThe National Company Law Tribunal (NCLT) today approved Tata Steel’s bid for debt-ridden Bhushan Steel. (Reuters)

The National Company Law Tribunal (NCLT) today approved Tata Steel’s bid for debt-ridden Bhushan Steel. The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel’s bid and imposed a fine of Rs 1 lakh. The bench comprising NCLT President Justice M M Kumar and S K Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh. L&T, which is an operational creditor of Bhushan Steel, had sought higher priority in recovery of debt in the resolution process at par with the financial creditors.

The tribunal also rejected Bhushan Energy’s plea to continue its power purchase agreement with Bhushan Steel. The order was pronounced in court today and detailed judgement is awaited. Earlier on April 11, the principal bench of the tribunal had reserved its order after hearing all the sides. The Committee of Creditors (CoC) had approved Rs 32,500 crore deal along with 12.27 per cent equity in Bhushan Steel offered by Tata Steel.

However, some employees of Bhushan Steel had challenged it before NCLT contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

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