Bhushan Power lenders allowed JSW to change parameters of bids, says Tata Steel; CoC went against NCLAT order

New Delhi: Tata Steel on Thursday submitted before the NCLAT that the lenders of the debt-ridden firm Bhushan Power & Steel permitted rival JSW Steel to change the basic parameters of its bids after submission.

Senior advocate Abhishek Manu Singhvi, appearing on behalf of Tata Steel, submitted before the appellate tribunal that it was against the interim order passed by NCLAT on 6 August.

While, Tata Steel following NCLAT (National Company Law Appellate Tribunal) order of the appellate tribunal 6 August order, has filed one additional plan.

Passing an order on August 6 order, the NCLAT had allowed all three contenders -- Tata Steel, Liberty House and JSW - to file additional unconditional 'resolution plans' by August 13, 2018, improving their financial offer without compromising the basic parameters of the 'resolution plans' already submitted by them.

However, the Committee of Creditors allowed JSW to change basic parameters of its resolution plans.

 Bhushan Power lenders allowed JSW to change parameters of bids, says Tata Steel; CoC went against NCLAT order

Representational image. Reuters.

A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya has listed the matter on 24 September for next hearing.

In July, NCLAT had vacated its stay and asked the CoC to consider resolution plans submitted by three firms -- Tata Steel, Liberty House and JSW Steel. The tribunal on July 20 gave a go-ahead to the CoC meeting, directing it to finalise a bid for the company.

However, JSW Steel revised its offer from Rs 11,000 crore to Rs 18,000 crore ahead of the CoC meeting.

Tata Steel put in a bid of Rs 17,000 crore.

Bhushan Power and Steel owes about Rs 45,000 crore to its lenders.

Earlier on 17 July, the NCLAT had stayed the meeting of CoC when they were going to vote for finalisation of the highest bidder (H1) for BPSL.

Bhushan Steel and Power was among the 12 non-performing accounts referred by the Reserve Bank of India (RBI) for NCLT proceedings.

Updated Date: Sep 07, 2018 07:12:18 IST