As per the latest updates on Bhushan Steel and Power Ltd’s (BPSL) insolvency case, the NCLAT (National Company Law Appellate Tribunal) has ruled against Tata Steel’s plea to dismiss rival bids for BPSL boosting JSW Steel Ltd’s offer to buy the indebted steel maker.
On Monday, NCLAT ruled that the Tata’s plea was “premature” and “unmaintainable” and upheld the right of the committee of creditors to update, amend, modify or annul resolution plans with respect to conditions outlined in a process document.
Tata Steel and JSW Steel, India’s top two steelmakers, as well as British metals and industrial firm Liberty House had submitted bids. However, Tata Steel challenged Liberty House’s bid, which it said was submitted after the deadline, and also JSW Steel’s revised, higher offer, which was also submitted after the deadline.
However, the tribunal said it would not interfere with JSW Steel’s bid because 97% of the indebted firm’s creditors had approved the JSW Steel’s plan in October 2018.
While Tata Steel offered INR 17,000 crore, Liberty House has offered INR 18,500 crore and JSW Steel’s revised offer stood at INR 19,700 crore for the BPSL plant with annual production capacity of 3.5 MnT.
In its last update on 20 Dec’18, the NCLAT had reserved its order on finalization of bids submitted by the bidders. NCLAT had completed hearing the arguments on a plea filed by Tata Steel Ltd. which alleged that lenders of BPSL allowed rival JSW Steel Ltd. to change the basic parameters of its bid after declaring Tata Steel as the highest bidder. The concerned parties were given time by 26 Dec’18 by the tribunal to submit their written submissions (if any).
The stressed asset BPSL was among the 12 accounts recommended by RBI’s (Reserve Bank of India) internal advisory committee for resolution under the Insolvency and Bankruptcy Code (IBC) in June last year. The company has total debt of INR 47,000 crores.
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