Appellate tribunal to hear Bhushan Steel plea on Monday

On Thursday, the appellate tribunal agreed to hear Mr Singhal's plea but it did not grant a stay on the proceedings.

Published: 20th May 2018 09:46 AM  |   Last Updated: 20th May 2018 09:46 AM   |  A+A-

For representational purposes (File | PTI)

By UNI

NEW DELHI: The National Company Law Appellate Tribunal will on Monday hear Bhushan Steel promoter Neeraj Singhal's plea against acquisition of the company by Tata Steel.

Mr Singhal has filed an objection at the appellate tribunal objecting to Tata Steel's takeover.

On Thursday, the appellate tribunal agreed to hear Mr Singhal's plea but it did not grant a stay on the proceedings.

Tata Steel Ltd on Saturday completed the acquisition of 73 percent stake in Bhushan Steel Ltd as part of its resolution plan under the Insolvency and Bankruptcy Code.

The board of Bhushan Steel approved the sale of 74.99 shares to Tata Steel's wholly-owned subsidiary Bamnipal Steel Ltd for nearly Rs 159 crore, the company said in its filing with the stock exchanges.

As part of this transaction, Bhushan Steel has also appointed three Tata Steel veterans "Anand Sen, Rajeev Singhal and Dibyendu Dutta" on its board.

Lenders to Bhushan Steel also received 7.25 crore equity shares worth Rs 2 each, after conversion of Rs 14.5 crore worth loans in the company, the exchange notification said.

With this acquisition, Bhushan Steel has become the first of the 12 large corporate accounts which were referred for insolvency action in June 2017 by lenders, after the Reserve Bank of India directed them to do so.

Tata Steel's resolution plan received a nod from the National Company Law Tribunal on Tuesday.

Lenders to Bhushan Steel, led by State Bank of India, have received Rs 35,200 crore to settle their dues worth over Rs 56,000 crore.

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  • Suresh

    Minority shareholders wealth has been eroded. First the Promters have fooled them now the Bankers
    1 year ago reply
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