Resolution professional examining bids for Bhushan Steel

KOLKATA: Bhushan Steel has clarified that the bids received by the resolution professional for the company are being examined to ascertain whether they meet mandatory requirements of the bankruptcy code and there are several steps involved before one single bidder is finally approved by the NCLT.

The BSE had earlier sought clarifications from the company after reports said JSW Steel had emerged as the highest bidder. Bhushan said on Thursday that after scrutinising the bids, the RP will call a meeting of the Committee of Creditors (CoC) for its approval.

Tata Steel, JSW and Bhushan employees have put in bids for the debt laden company.

Neeraj Singhal, the company's promoter, is also believed to have put in his bid. However, the bid is unlikely to be considered, since the revised Bankruptcy Code bars defaulting promoters who are yet to clear their dues from bidding for their companies.

Bhushan Said once the complaint resolution plans are identified, RP will call for a COC meeting to present these plans to the CoC for its approval.

The resolution plan as may be approved by the CoC will then be presented to the NCLT for its approval, upon which it shall become binding on the stakeholders involved. Thus there are several steps involved in the entire process being run as per the Code, the Rgulations and the NCLT order, before one single resolution applicant and its resolution plan is finally approved by the NCLT.

The resolution plans put forth by the resolution applicants are an outcome of a process envisaged in the Code and are mere proposals at this stage, Bhushan Steel said.