New Delhi : National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel’s bid of Rs 32,500 crore, along with 12.27 per cent equity to creditors, for the debt-ridden Bhushan Steel.
Tata Steel would implement the resolution plan through its step-down subsidiary Bamnipal Steel. Bamnipal Steel would invest in the debt-ridden company and acquire control on closing date, Bhushan Steel said in a regulatory filing.
“As per the terms of approved Resolution Plan, Bamnipal Steel (BNPL), a wholly-owned subsidiary of Tata Steel, will initially subscribe to 72.65 per cent equity share capital of BSL at face value i.e. at Rs 2 per share, for an aggregate amount of Rs 158.89 crore,” Tata Steel said.
In an identical filing, Bhushan Steel confirmed the development saying Tata Steel shall implement the resolution plan through Bamnipal Steel Ltd, a wholly owned subsidiary of Tata Steel.
It further added: “Pursuant to the resolution plan, Bamnipal Steel would invest in, and acquire control of, the company on closing date.”
Earlier, the tribunal accepted the plan filed by Bhushan Steel’s resolution professional (RP), which was approved by the Committee of Creditors (CoC) lead by SBI, after finding Tata Steel as the highest bidder.
“The application filed by the RP for accepting the resolution plan approved by the CoC submitted by resolution applicant Tata Steel is accepted,” said a two member bench comprising NCLT President Justice M M Kumar and S K Mohapatra. The tribunal also gave approval for the appointment of a monitoring agency for the deal.