Insolvency: Bhushan Power lenders asked to go ahead with selection of bids | Business Standard News–25.05.2018

The National Company Law Appellate Tribunal (NCLAT) today asked the Committee of Creditors (CoC) of debt-ridden Bhushan Power & Steel to proceed with the bids submitted by Tata Steel and UK-based Liberty House. The appellate tribunal also directed the CoC to keep its decision over the bids in a sealed cover and said it would be subject to its final order.

“Approval of one or the other would be kept in a sealed cover,” said the NCLAT bench headed by Chairman Justice S J Mukhopadhaya.

The appellate tribunal also declined the request of the Committee of Creditors to direct both the parties to submit fresh bids. NCLAT has listed the matter for further hearing on July 12.

The appellate tribunal’s order came over an application filed by CoC seeking clarification over the process.

Earlier on April 23, the National Company Law Tribunal (NCLT) had directed the lenders of Bhushan Power & Steel, led by PNB, to consider the bid submitted by UK-based Liberty House for the debt-ridden company. Allowing the plea of Liberty House, the tribunal directed the CoC to complete its resolution proceedings by June 23. Tata Steel has already challenged the order of the principal bench of NCLT.

Bhushan Steel, which has been acquired by Tata Steel under the insolvency process, has sought 90-day extension to file its audited financial results for the quarter and year ended March. Tata Steel completed the acquisition of controlling stake of 72.65 per cent in the debt-laden firm last week. According to norms, the firm is under obligation to submit its audited financial results for quarter and year ended March within 60 days from the end of the financial yearBhushan Steel said since the new management has to sign the audited results, it is imperative that the same is done after due review, revalidation and ensuring that fair disclosures are being made.

via Insolvency: Bhushan Power lenders asked to go ahead with selection of bids | Business Standard News

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