New Delhi : The National Company Law Appellate Tribunal (NCLAT) on Monday declined to stay Tata Steel’s acquisition of debt-laden Bhushan Steel under the corporate insolvency resolution process.
An NCLAT bench headed by Chairman Justice S J Mukhopadhaya also issued notices to Tata Steel, the resolution professional and Committee of Creditors of Bhushan Steel on a petition filed by its promotor Neeraj Singal challenging the sale.
“Let us decide the law but not stall the process,” the bench said, adding that the resolution process would be subject to the final outcome of the case.
The bench directed the matter to be listed on May 30 and asked the parties to file their replies in a week.
Shares of Bhushan Steel on Monday rose nearly 5 per cent, its upper circuit, to hit Rs 29 on BSE.
Meanwhile, L&T which is an operational creditor of Bhushan Steel, has also approached the appellate tribunal against NCLT’s order approving sale of the debt-ridden firm to Tata Steel. L&T’s plea would be heard on Tuesday. In his petition, Neeraj Singal has challenged the eligibility of Tata Steel as resolution applicant under Section 29 A of the Insolvency and Bankruptcy Code.
Deal to cut banks’ NPAs by Rs 35K cr
NEW DELHI: The acquisition of Bhushan Steel, under the IBC framework, will reduce bad loans of PSBs by Rs 35,000 crore, Financial Services Secretary Rajiv Kumar said. “IBC transforming credit culture in NewIndia. About Rs 35,000 crore reduction of NPAs of PSBs in Bhushan Steel case. Reduction of NPAs in individual PSBs range from about Rs 500 crore to over Rs 10,000 crore, he tweeted. Kumar said following the buyout, PSBs will write back Rs 7,500 crore of loans which were earlier classified as NPAs.
“Future upside through over 6 crore equity shares acquired by PSBs. Decisive shift towards clean credit culture,” Kumar tweeted.
Last week, Finance Minister Piyush Goyal had tweeted that the acquisition was a “historic breakthrough in resolving legacy issues of banks”.
