Insolvency Proceedings: NCLAT Allows Liberty House Bid For Bhushan Power

The National Company Law Appellate Tribunal has allowed debt-laden Bhushan Power & Steel Ltd.’s committee of creditors to consider a bid submitted by Liberty House U.K, according to a Bloomberg report.

This comes after Tata Steel Ltd. moved the NCLAT the day before challenging the NCLT ruling allowing creditors to do the same.

Last month, the NCLT had asked the lenders of the insolvent company to consider the U.K.-based Liberty House’s bid at the next meeting of the CoC, citing that bids can only be rejected on substantive grounds, and not because of delays. The tribunal had also then extended the deadline for finalising resolution plan to June 23.

Previously, Liberty House had challenged the CoC’s decision to reject its over Rs 26,000 crore bid for acquiring stressed assets of the Delhi-based steelmaker on grounds of late submission. The metals company argued that it had submitted its bid a day before the CoC opened the contesting bids, making a case for its bid to be considered.

Prior to that, Tata Steel had emerged as the highest bidder in the the beleaguered company’s resolution process, offering Rs 24,500 crore before the February 8 deadline. The steel major’s bid topped Rs 13,000 crore offered by JSW Steel Ltd.

Bhushan Power & Steel, one of the first 12 large stressed accounts identified by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code, owes more than Rs 47,000 crore to lenders, according to information on its website.