A worker welds a steel plate in Surat, India (Photographer: Amit Bhargava/Bloomberg News)  

NCLAT Extends Deadline For Submitting Bhushan Power Bids To Aug. 13

The National Company Law Appellate Tribunal today extended the deadline for submitting revised bids for debt-laden Bhushan Power and Steel Ltd. till Aug. 13.

The appellate tribunal also added a caveat saying that all the bids must be unconditional. After this order, all three bidders—Tata Steel Ltd., U.K.-based Liberty House and JSW Steel Ltd.—will be eligible to submit their revised bids till next Monday.

In a separate plea last week, Tata Steel had moved the Supreme Court against the NCLAT’s previous order that allowed the submission of revised bids for the company. The top court, while refusing to grant a stay, had fixed the date of hearing on Aug. 10. Tata Steel had sought an urgent hearing on the grounds that the committee of creditors may take a decision before the apex court hears the case.

However with today’s order, the Supreme Court will be hearing the case before the deadline for submission of the revised bids ends.

Tata Steel, Liberty House and JSW Steel had bid for Bhushan Power & Steel earlier. Those bids, however, stand null and void after fresh bids were called on Aug. 1. In the previous round a day earlier, Tata Steel was selected as the highest bidder by Bhushan Power’s CoC.

Bhushan Power, owing more than Rs 48,500 crore to a consortium of lenders led by Punjab National Bank, is one of the 12 large companies identified by the Reserve Bank of India for early insolvency resolution.

Also read: Insolvency Diaries: Will NCLT’s Essar Steel, Bhushan Power Orders Change The Insolvency Process?