NCLAT extends bid deadline for Bhushan Power & Steel to 13 August
07 Aug 2018
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The National Company Law Appellate Tribunal (NCLAT) on Monday further extended the deadline for submitting bids for Bhushan Power and Steel from Monday (6 August) to 13 August.
The NCLAT had, on 1 August, asked the three bidders – Tata Steel, JSW Steel and Liberty House – to submit bids by 6 August and had set the next hearing for 17 August.
However, Tata Steel, which had moved the Supreme Court against the decision to invite fresh bids, had sought more time for submitting bids. Tata Steel is seeking a stay on the NCLT decision to invite revised bids following the NCLAT order.
Tata Steel moved the SC on 3 August seeking an urgent hearing, but the three-judge bench headed by Chief Justice Dipak Misra turned down the urgent hearing plea and posted the matter for 10 August.
This will give both lenders and bidders time to plan their moves. It also raises the prospect of the bids going much higher.
Bhushan Power and Steel owes banks Rs49,700 crore.
Against this, Tata Steel bid Rs17,000 core in July, which was then the highest bid. But, before the creditors could decide on the offer, JSW Steel had revised its bid from Rs11,000 crore to about Rs19,000 crore, way higher than Tata Steel’s Rs17,000 crore, and beating Liberty House’s offer of Rs18,600 crore.
Tata Steel had written a letter to Bhushan Steel’s Committee of Creditors not to consider the Rs19,000-crore revised bid placed by JSW Steel. When the CoC informed NCLAT about the new, higher bid by JSW Steel, the Tribunal asked all the three bidders, including Liberty House, to revise their bids by 6 August. This has now been extended to 13 August
The resolution period for the company was to end on 23 June.
