Tata Steel is making a last ditch attempt to buy the bankrupt Bhushan Power and Steel even though the Committee of Creditors (CoC) to the company are understood to have identified JSW Steel as the preferred bidder. The National Company Law Appellate Tribunal (NCLAT) on Monday adjourned to November 1, the hearing on Tata Steel’s plea challenging the CoC’s decision to allow JSW Steel to submit a revised bid for the bankrupt Bhushan Power and Steel (BPSL).
Senior counsel Abhshek Manu Singhvi, appearing on behalf of Tata Steel, alleged that the CoC gave JSW Steel undue chances to revise its bid after declaring Tata Steel as the highest bidder. Tata Steel will continue pleading its case on November 1, the next date for hearing.
“On the next date, taking into consideration the time may be taken for completion of the argument, the Appellate Tribunal will decide as to whether, in the meantime, the Adjudicating Authority (NCLT) be allowed to consider the ‘approved resolution plan’,” the two-member NCLAT bench, headed by Justice SJ Mukhopadhaya, said.
Lenders had on July 31 selected Tata Steel as the H1 bidder and JSW Steel as the H2 bidder for BPSL. This was done at the instance of the appellate tribunal which, on July 20, had asked the CoC to select the H1 and H2 bidders. However, on July 27, the CoC allowed JSW Steel to submit a revised bid for the steelmaker. Tata Steel challenged the CoC’s decision in NCLAT on July 30. However, on August 1, NCLAT had again allowed submission of revised bids by all three bidders, including the UK-based Liberty House.
Following this, on August 13, JSW Steel raced past Tata Steel to emerge as the most preferred bidder for BPSL, which has around 3 million tonne per annum steel-making capacity. Sources said JSW Steel has offered to pay Rs 19,350 crore to the financial creditors of the debt-ridden company. Apart from this, the company has offered to pay Rs 350 crore to the operational creditors against their admitted claims of Rs 700 crore.
JSW Steel’s Rs 19,350 crore offer would mean the lenders of the company – which owed Rs 47,000 crore to a clutch of lenders led by Punjab National Bank – will have to take 59% haircut for their exposure to the company. JSW Steel has already taken over another insolvent firm Monnet Ispat through the IBC route. Monnet has 1.1 mtpa steel-making capacity.
via Bhushan Power bid: NCLAT gives Tata Steel a chance to plead its case – The Financial Express
aniltikotekar4sme.com 