Company law tribunal asks Bhushan Steel creditors to consider UK-based Liberty House bid
The National Company Law Tribunal (NCLT) on Monday asked the lenders of Bhushan Power & Steel, led by PNB, to consider the bid submitted by UK-based Liberty House for the debt-ridden company
New Delhi: The National Company Law Tribunal (NCLT) on Monday asked 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 has directed the committee of creditors (CoC) to complete its resolution proceedings by 23 June.
A two-member NCLT bench, headed by President Justice M M Kumar, said that Liberty House bid cannot be disqualified only on the ground of being submitted after the deadline of the resolution professional (RP).
"We hope that CoC takes an appropriate commercial decision as per the Insolvency and Bankruptcy Code (IBC)," said NCLT.
The tribunal's order came over a petition filed by Liberty House, challenging the rejection of its bid by the RP for Bhushan Power and Steel on account of late submission.
Welcoming the order, a Liberty House Spokesperson said, "The judgement came out today. The NCLT has given the judgement in our favour saying that our bid should be considered for such a good asset. We are really grateful to the court..."
The CoC had in February rejected Liberty House's bid to acquire Bhushan Power and Steel, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm.
Liberty House had moved the NCLT on 26 February against the rejection.
Liberty House had submitted before the NCLT that RP rejected its bid to acquire Bhushan Power and Steel without even opening the seal of its offer.
An official with JSW Steel refused to comment on the development but said the company at present is focusing on Essar Steel.
Tata Steel Spokesperson also declined to comment.
Bhushan Power and Steel Ltd was among the 12 non-performing assets the Reserve Bank had referred for insolvency proceedings in June last year.
The company owes about Rs 45,000 crore to its lenders.
he case of alleged bribery of Syndicate Bank Chairman-cum-Managing Director S K Jain may come up for discussion in the meeting of Special Investigation Team on black money, as it is a "classic" case of how proceeds of corruption were transferred through hawala channels.
Bhushan Steel surges 34 percent in two sessions as lenders' forum agree to refinance Rs 35k-cr loans
Bhushan Steel stock has so far gained 18 percent in today's trade
In one month, Bhushan Steel stock tumbled 23 percent while taking a hit of 25 percent since the beginning of 2015