A new management team has been put into place at Bhushan Steel Ltd. after it was acquired by Tata Steel Ltd. through India’s new insolvency and bankruptcy process.
Rajeev Singhal has taken over as the new managing director of the steelmaker, while Krishnava Dutt has been appointed independent director, according to information on Bhushan Steel’s website. The new board comprises of three non-executive directors – Anand Sen, Shuva Mandal and Dibyendu Dutta. Other appointments include,
- Chief Financial Officer: Sanjib Nanda
- Chief Operating Officer: Ujjal Chakraborti
- Company Secretary: OP Davra
“All appointments are with effect from May 18, 2018,” a company official said. They added that no employee of Bhushan Steel has been asked to leave the company after the acquisition.
On May 18, Tata Steel – which had won the bid for Bhushan Steel in an insolvency process – completed the acquisition of 72.65 percent stake in the debt-laden firm. Lenders to Bhushan Steel also received 7.25 crore equity shares worth Rs 2 each, after conversion of Rs 14.5 crore worth loans in the company, the exchange notification said.
With this acquisition, Bhushan Steel became the first of the 12 large corporate accounts which were referred for insolvency action in June 2017 by lenders, after the Reserve Bank of India directed them to do so.