Lifting its earlier stay order, the National Company Law Appellate Tribunal (NCLAT) on Thursday allowed lenders to Bhushan Power and Steel (BPSL) to go ahead with the resolution process for the bankrupt firm and approve an appropriate resolution plan, and place it before the adjudicating authority (NCLT) to seek its go-ahead.
Tata Steel, Liberty House and JSW Steel are in the fray to take over BPSL. Sources said that while Tata Steel’s bid was a little lower than that of the UK-based Liberty House, it was higher than JSW Steel’s. The committee of creditors (CoC) has earlier zeroed in on Tata Steel as the preferred bidder because its bid was more acceptable on other parameters than those of the other two.
Liberty House was a late bidder in BPSL. Tata Steel, which had emerged as the highest bidder before Liberty’s entry, had challenged the NCLT’s April 23 order that asked the lenders to consider the late bid submitted by the UK-based firm.
In its May 9 order, the appellate tribunal also ordered that Liberty House’s bid should be accepted, but asked lenders not to disclose the identity of the highest bidder till it decides on the petition. Read More