New Delhi : The resolution professional for Bhushan Steel on Wednesday submitted the insolvency plan to National Company Law Tribunal, wherein it named Tata Steel as the highest bidder.
Under the plan, Tata Steel will invest around Rs 35,000 crore in the company, the counsel appearing for resolution professional said.
“The total sum is upwards of Rs 35,000 crore, which also includes some payments for operational creditors and other lenders. Different lenders are being dealt with differently,” the counsel said.
The tribunal, on the other hand, asked the resolution professional to provide a copy of the final plan to all stakeholders including operational creditors and employees of Bhushan Steel.
Lenders to Bhushan Steel had on Friday approved insolvency resolution after identifying the Tata group company as the successful applicant. Subsequently, Tata Steel accepted a letter of intent for acquisition under the corporate insolvency resolution process.
Bhushan Steel, the third largest domestic producer of secondary steel, has total production capacity of 5.6 million tonne per annum, with plants in Uttar Pradesh, Odisha, and Maharashtra. Insolvency proceedings against the Delhi-based steelmaker and its sister concerns, which together owe around 560 bln rupees, were initiated in July by the National Company Law Tribunal, on a plea by State Bank of India and Punjab National Bank.
The case will next be heard on Monday, along with the plea of nearly 400 Bhushan Steel employees who had objected to Tata Steel being chosen as the final buyer.
