Moneycontrol
May 15, 2018 12:44 PM IST | Source: Moneycontrol.com

Bhushan Steel locked in 5% upper circuit after NCLT nod to Tata Steel's resolution plan

The Committee of Creditors (CoC) had approved Rs 32,500 crore deal along with 12.27 per cent equity in Bhushan Steel offered by Tata Steel.

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Bhushan Steel share price was locked at 5 percent upper circuit at Rs 23.95 on Tuesday after the National Company Law Tribunal (NCLT) has approved the resolution plan of Tata Steel for the debt-ridden company.

There were pending buy orders of 279,032 shares, with no sellers available at 12:27 hours IST.

The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid and imposed a fine of Rs 1 lakh.

The bench comprising NCLT President Justice M M Kumar and S K Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.

L&T, which is an operational creditor of Bhushan Steel, had sought higher priority in recovery of debt in the resolution process at par with the financial creditors.

The tribunal also rejected Bhushan Energy's plea to continue its power purchase agreement with Bhushan Steel. The order was pronounced in court today and detailed judgement is awaited.

Earlier on April 11, the principal bench of the tribunal had reserved its order after hearing all the sides.

The Committee of Creditors (CoC) had approved Rs 32,500 crore deal along with 12.27 per cent equity in Bhushan Steel offered by Tata Steel.

However, some employees of Bhushan Steel had challenged it before NCLT contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

(With inputs from PTI)
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