NCLT tells Bhushan Steel lenders to examine Liberty House’s plan

The National Company Law Tribunal (NCLT) on Monday directed the Committee of Creditors (CoC) for Bhushan Power and Steel to consider UK-based Liberty House’s resolution plan for the debt-ridden company and “take (an) appropriate commercial decision”.

A bench headed by M M Kumar directed that the insolvency resolution professional to place the unopened sealed cover containing Liberty House’s resolution plan before the next meeting of the CoC.

Ruling that the period of litigation stands excluded from the time-bound resolution period, the tribunal further extended Bhushan Power and Steel’s resolution deadline to June 23.

Stating that “the rejection (if so decided by the CoC subsequently) shall be on a substantive ground against a flimsy one”, the NCLT asked the CoC to “not reject it on the ground of delay emanating from the process document or any other document internally circulated by the RP or the CoC”.

Liberty House had moved the NCLT on February 26 against the rejection of its “unopened” bid for the corporate debtor by the CoC for late submission and failure to submit certain documents.

The last date for submission of bids was February 8, whereas the insolvency resolution professional received Liberty House’s proposal on February 20.

Apart from Liberty House, Tata Steel Ltd and JSW Steel are also in the race to acquire the bankrupt steel maker.