Plea to stay Bhushan Steel resolution dismissed

The plea was after the NCLT directed Bhushan Power’s lenders, led by Punjab National Bank, to consider the bid submitted by Liberty House.

Published: 13th July 2018 01:58 AM  |   Last Updated: 13th July 2018 02:36 PM   |  A+A-

Representational image. Men ride their bicycles in front of the Bhushan Steel plant in Odisha. (File | Reuters)

By Express News Service

MUMBAI: In a setback to UK-based Liberty House, the National Company Law Appellate Tribunal (NCLAT) on Thursday rejected its plea to stay the resolution process of Bhushan Power and Steel.

A two-member bench of the appellate tribunal, headed by Justice S J Mukhopadhaya, directed the committee of creditors to go ahead with the resolution process. Currently, lenders of Bhushan Power and Steel are finalising the bids.

It may be noted that Liberty House moved the NCLAT against the committee of creditors and resolution professional of Bhushan Power seeking information on the bid finalisation process of the firm. In its petition, Liberty House alleged that lenders did not share information or documents related to their meeting. The plea was after the NCLT directed Bhushan Power’s lenders, led by Punjab National Bank, to consider the bid submitted by Liberty House. This order was later challenged by Tata Steel, another resolution applicant of Bhushan Power, before NCLAT.

As per reports, Liberty House offered Rs 18,000 crore, higher than Tata Steel’s Rs 17,000 crore (excluding the Rs 7,000 crore that Tata Steel provided for Bhushan Power’s operations). Bhushan Power and Steel owes lenders over Rs 47,000 crore and is one of the largest among the 12 stressed accounts identified by the RBI for resolution under the Insolvency and Bankruptcy Code last June. Apart from Bhushan Power and Steel, Liberty House has also bid for Amtek Auto’s assets under the insolvency process.

Insolvency case
■ Bhushan Power and Steel owes lenders over I47,000 crore
■ NCLT had directed Bhushan Power’s lenders to consider a bid submitted by Liberty House
■ This order was challenged by Tata Steel, another applicant
■ Liberty House offered I18,000 crore, higher than Tata Steel’s I17,000 crore

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