New Delhi,jul 10:
UK-based Liberty House on Monday approached the National Company Law Appellate Tribunal (NCLAT) against the committee of creditors and resolution professional of Bhushan Power & Steel seeking information on the bid finalisation process of the firm.
In its plea, Liberty House has alleged that lenders are not sharing any information or documents related to their meeting, which is being convened today.
A two-member bench headed by Chairman Justice S J Mukhopadhaya has asked the lenders to address the grievances of Liberty House. The appellate tribunal has also directed to list Liberty House’s plea on July 12, when the main matter related to Bhushan Power & Steel Ltd (BPSL) would come up for hearing.Earlier, lenders of BPSL had rejected the resolution plan submitted by Liberty House citing delay, following which the UK-based group had moved the National Company Law Tribunal (NCLT) Chairman Justice SJ Mukhopadhaya heard the appeal moved by Tata Steel Ltd against an NCLT order directing the CoC to consider UK-based Liberty House’s resolution plan.e appellate tribunal reiterated its 9 May order allowing the CoC to consider the resolution plans submitted before it.
Tata Steel, had earlier, filed an appeal in NCLAT, challenging the NCLT order asking lenders to consider a late bid by UK’s Liberty House for Bhushan Power & Steel.
The last date for submission of bids for the bankrupt company was 8 February, whereas the insolvency resolution professional received Liberty House’s proposal on 20 February.The bid was initially rejected by the creditors but was eventually opened under directions from the NCLT on April 23.Liberty House had moved NCLT on February 26 against the rejection of its bid.Both the companies are very keen to acquire Bhushan Power & Steel as it is the second-biggest in terms of capacity and can produce 3.2 million tonnes of steel a year. Bhushan Steel has plants in Ghaziabad, Uttar Pradesh; Khopoli, Maharashtra; and Dhenkanal, Odisha.
For Tata, which recently completed the acquisition of another Bhushan company — the acquisition of Bhushan Steel will add to its existing capacity. As for Liberty House, the acquisition will provide it a firm presence in the Indian market.While reports suggests that Tata Steel has offered Rs 17,000 crore to the lenders as upfront amount and Rs 7,200 crore for operations of Bhushan, Liberty house has offered over Rs 26,000 crore for acquiring the company
