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NCLT approves Tata Steel bid for Bhushan Steel

15 May, 2018 6:35 AM
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NCLT approves Tata Steel bid for Bhushan Steel

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 percent equity in Bhushan Steel offered by Tata Steel.

Also read: Tata Steel acquisition of Bhushan Steel helps YES Bank recover ₹184 cr. debt

Source: moneycontrol.com

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