Long lengths of red hot steel pass through a machine in the foundry at the ArcelorMittal steel plant in Zenica, Bosnia. (Photographer: Oliver Bunic/Bloomberg)

NCLAT Asks Bhushan Power Lenders To Proceed With Selection Of Bids

The National Company Law Appellate Tribunal today asked the committee of creditors of debt-ridden Bhushan Power and Steel Ltd. to proceed with the bids submitted by Tata Steel Ltd. and U.K.-based Liberty House.

The appellate tribunal also directed the CoC to keep its decision over the bids in a sealed cover and said it would be subject to its final order.

“Approval of one or the other would be kept in a sealed cover,” said the NCLAT bench headed by Chairman Justice SJ Mukhopadhaya. The appellate tribunal also declined the request of lenders to direct both parties to submit fresh bids. NCLAT has listed the matter for further hearing on July 12.

Also Read: Bhushan Steel Gets New Management After Tata Steel Takeover

The appellate tribunal’s order came over an application filed by CoC seeking clarification over the process.

On April 23, the National Company Law Tribunal had directed the lenders of Bhushan Power and Steel, led by Punjab National Bank, to consider the bid submitted by U.K.-based Liberty House for the debt-ridden company. Allowing the plea of Liberty House, the tribunal directed the CoC to complete its resolution proceedings by June 23.

Tata Steel has already challenged the order of the principal bench of NCLT.

Also Read: Bhushan Steel’s Former Promoter Calls Insolvency Process Opaque 

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