NCLAT reserves order over Bhushan Steel's ex-promoter challenging sale of stressed firm to Tatas

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday reserved its order over plea filed by the former promoter of Bhushan Steel challenging the sale of the debt-ridden company to Tata Steel under the Corporate Insolvency Resolution Process.

The appellate Tribunal has also reserved order over pleas of engineering firm Larsen & Toubro Ltd, an operational creditor of Bhushan Steel, which has supplied goods worth Rs 900 crore to the company.

A two-member bench headed by Chairman Justice S J Mukhopadhaya has said that the parties, which also includes Bhushan Energy, may file their written submissions by today (Friday).

Representational image. Reuters.

Representational image. Reuters.

In May, the Principal Bench of the NCLT had approved Tata's Rs 32,500 crore deal along with 12.27 percent equity to the lenders. This was challenged before the NCLAT by the promoters, including Neeraj Singhal, and operational creditors of the company.

Nearly 1,700 other operational creditors of Bhushan Steel has also moved the appellate tribunal seeking to know how Tata Steel, which has committed to pay Rs 1,200 crore would pay them.

Bhushan Energy had also moved the appellate tribunal as NCLT had rejected its claim to ensure the continuance of its power purchase agreement with Bhushan Steel, which is proposed to be terminated under Tata Steel's resolution plan.

Bhushan Steel had entered into two power purchase agreements with Bhushan Energy for the supply of power until September 2024 and December 2024, respectively.


Updated Date: Jul 27, 2018 11:41 AM

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