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Mar 23, 2018 10:32 AM IST | Source: Moneycontrol.com

Tata Steel gets second time OK for Bhushan Steel

On March 6 too, the company was declared the preferred bidder for Bhushan Steel, but was contested by the stressed company's employees.

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Tata Steel announced Friday morning that it has been declared as the successful resolution applicant by the Committee of Creditors (CoC) of Bhushan Steel Limited (BSL), the stressed asset that was put for auction under the Insolvency and Bankruptcy Code.


The announcement could finally pull the curtains on a contentious auction, which saw employees of Bhushan Steel challenging a March 6 decision that had picked Tata Steel as the preferred buyer.


Tata Steel said it was informed by the CoC on March 22.


The latest announcement is subject to the Tata company obtaining necessary regulatory approvals, including approval from the NCLT and the Competition Commission of India.


"Tata Steel has accepted the Letter of Intent for BSL under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC)," said the company.


First ok


On March 7, Tata Steel had announced that it had received a formal confirmation from the RP and that the company has been identified as the highest evaluated resolution applicant for Bhushan Steel.


But even as the company began talks with the RP and CoC on finalising the resolution plans, employees of Bhushan Steel approached the NCLT, which asked the lenders to consider their plea.


The CoC later met on March 20 to discuss the same.


Bhushan Steel has a 5.6 million tons per annum facility in Odisha, and its auction had got bids from JSW Steel and Tata Steel.

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