The recent orders from the NCLAT are issued to Bhushan Power and Steel. The orders are strictly for the start of their resolution process. In the resolution, BPSL has to confess that they are bankrupt. Along with the decision BPSL has to provide the appropriate resolution plan.
After the resolution process has been done all the property and assets filed by BPSL is legally take over by Tata Steel, JSW Steel, and Liberty house.
Some of the sources stated that liberty house has higher bids than other too companies. However, still, the committee of the creditor has decided to give the more preference to Tata Steel than other two companies. The reason behind it was bid of Tata Steel was widely accepted on different parameters.
All the three companies which are bidding for the BPSL, UK based Liberty house was the late bidder. Apart from this Tata steel was the active and dominant bidder for the BPSL.
NCLT’s on 9th of may make clear that the bid from the liberty house is accepted. Along with this, another condition was put that, the identity of the company having the highest bid is not disclosed. All the information about the highest bid is decided on the petition.
After 9th May another order has been passed by the NCLAT on 24th of May and stated that a committee of the creditor approves the resolution plan only after the permission of the appellate tribunal. All the relevant information is kept under the seal before an appellate tribunal has passed any order.
When the matter was heard in the appellate tribunal by the bench of two members. The hearing was headed by the chairman of justice named SJ Mukhopadhaya. The appellate tribunal decided that “all the earlier orders stand modified.”
Tata Steel and JSW steel is the two companies who file their bid before the deadline date. Mahender Khandelwal who is the resolution professional for the BPSL rejects the bid of UK based company named liberty house by giving the reason that the bid was submitted after the deadline date.
Tata steel offers the sum of Rs 17000 crore for BPSL. JSW Steel provides 11000 crores. While the Liberty House delivers the maximum amount of Rs 18500 crores.
From the recent news, it was disclosed that the company owes lenders worth Rs 47000 crore.