New Delhi: Tata Steel on Monday alleged that the committee of creditors (CoC) of Bhushan Power and Steel were biased towards JSW Steel’s bid for the company as they had allowed the latter to revise its resolution plan six times. “Prior to approval by the adjudicating authority, merely because it is CoC, it cannot have changes after changes. I am making a direct charge,” the lawyer appearing for Tata Steel told the National Company Law Appellate Tribunal.
Nearly 90 per cent of lenders to bankrupt-Bhushan Power and Steel have favoured JSW Steel’s Rs 19,300 crore offer, according to reports. The new offer, Tata Steel alleged, was in contravention of the appellate tribunal’s orders which had ordered that the revised bids submitted by the companies could not alter financial aspect of their offer.
JSW Steel had revised its offer from Rs 11,000 crore to Rs 18,000 crore and later to Rs 19,600 crore, whereas Tata Steel’s latest offer stands at Rs 17,000 crore, according to reports. The National Company Law Appellate Tribunal on August 1 allowed three existing bidders–Tata Steel, JSW Steel and UK-based Liberty House–to submit revised bids for the beleaguered power company by Aug 6. The tribunal had later revised the date to Aug 13.
Bhushan Power is among the 12 large non-performing accounts which the Reserve Bank of India had asked the banks to take to the National Company Law Tribunal for resolution under insolvency code. Bhushan Power owes around Rs 45,000 crore to its lenders.
The appellate tribunal will next hear the matter on Nov 1, when it will decide whether the National Company Law Tribunal can be allowed to proceed with opening of bids for Bhushan Power and Steel.