'Bhushan Power rebid process violates NCLAT orders, IBC'; final bids to be submitted today

New Delhi: Tata Steel has written a letter to the lenders of debt-laden Bhushan Power & Steel alleging that rebid process has violated the NCLAT order and Insolvency and Bankruptcy Code (IBC), sources said on Monday.

The committee of creditors (CoC) has asked the BPSL bidders, including Tata Steel and JSW Steel, to submit their final bids by Tuesday morning to acquire assets of the debt-ridden firm.

"CoC in its meeting held a few days back had given time till tomorrow morning to the bidders to come up with revised financial offers," a source said.

According to the sources privy to the development, Tata Steel in its letter has alleged that the CoC was not following legal process as per the National Company Law Appellate Tribunal order.
Tata Steel spokesperson said that the company has "no comment to offer".

When contacted, Resolution Professional (RP) Mahender Kumar Khandelwal declined to comment on the development.

On 20 July, the National Company Law Appellate Tribunal (NCLAT) gave a go-ahead to the lenders' meeting of debt-ridden Bhushan Power & Steel (BPSL), directing it to finalise a bid for the company.

Sajjan Jindal's has revised its offer from Rs 11,000 crore to Rs 18,000 crore.

 Bhushan Power rebid process violates NCLAT orders, IBC; final bids to be submitted today

Representational image. Reuters.

Tata Steel's offer stands at Rs 17,000 crore.

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

Vacating its earlier stay, the appellate tribunal had this month directed the committee of creditors of the company to consider the resolution plans submitted by three firms -- Tata Steel, Liberty House and JSW Steel.

NCLAT had also directed the CoC to call all the three bidders, along with operational creditors and suspended board of directors, in the meeting.

The CoC will call for urgent meeting to take the resolution plan for discussion and approval, a two-member bench headed by Chairman Justice S J Mukhopadhaya had said.

Earlier, on 17 July, 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 IRBI for NCLT proceedings.

Updated Date: Jul 31, 2018 11:09:33 IST