The Bhushan Power & Steel owes nearly Rs 450 billion to its lenders
Veena Mani | New Delhi Last Updated at March 13, 2018 17:02 IST
The National Company Law Tribunal (NCLT) has prohibited committee of creditors from holding a meeting on resolution plan for Bhushan Power & Steel till the tribunal decides on the petition filed by UK-based Liberty House. The committee was to hold the meeting on Wednesday. The Delhi bench of NCLT said any such meeting could be prejudiced against Liberty House. Earlier, the committee of creditors had rejected the bid of Liberty House for Bhushan Power without even opening it as it was submitted after a deadline of February eight. This has left Tata Steel and JSW Steel in the race.
The Liberty House has moved NCLT against the committee’s decision. Justice M M Kumar said that the creditors have time till April to finalise a plan. The tribunal stated that the creditors need not be in a hurry to complete a plan as moratorium period of 270-days ends in April. The creditors and resolution professional’s counsels said they did not have even the choice of accepting Liberty House’s bid as yet. The Bhushan Power & Steel owes nearly Rs 450 billion to its lenders. The counsel opposing Liberty House had argued in previous hearings that not just that the bid was placed after the deadline had passed but also that the bidder did not comply with the submission obligations set by the resolution professional.
First Published: Tue, March 13 2018. 17:01 IST