NCLAT to hear plea on Bhushan Steel takeover

The National Law Appellate Tribunal (NCLAT) on Thursday posted an appeal moved by Neeraj Singal, the erstwhile promoter and managing director of Bhushan Steel Ltd, challenging the approval of Tata Steel Ltd’s resolution plan for hearing on May 21.

Singal owns close to 22% shares in Bhushan Steel and would seek a stay on the transfer of his equity to Tata Steel as an interim measure.

The National Company Law Tribunal’s (NCLT) principal bench on May 15 had approved Tata Steel’s resolution plan for debt-ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC).

Tata Steel Ltd has offered an upfront payment of ₹35,200 crore to lenders, along with a 12.27% stake in the steel maker, according to its resolution plan.

This plan was approved by the committee of creditors (CoC) for Bhushan Steel with a 99.8% majority vote after testing its “commercial viability and feasibility”.

According to the resolution plan, Tata Steel has also proposed to pay salary dues to employees of Bhushan Steel and ensure continuation of employment. The resolution plan also proposes to pay back Bhushan Steel’s operational creditors to the extent of ₹1,000 crore and an additional ₹200 crore on a pro rata basis spread over one year, depending upon “vitality to running the business”.

NEW DELHI: