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Corporate resolution: Larsen & Toubro moves NCLT against Bhushan Steel

The move follows Tata Steel's announcement that it emerged as the highest bidder for the Delhi-based steel company, beating Sajjan Jindal-promoted JSW

Veena Mani & Jyoti Mukul  |  New Delhi 

Larsen & Toubro
A corporate tug of war has broken loose, with infrastructure major Larsen & Toubro moving the National Company Law Tribunal’s Delhi Bench against the resolution process. This was after Tata Steel on Wednesday announced it had emerged as the highest bidder for the Delhi-based steel company, beating Sajjan Jindal-promoted JSW. This is the second insolvency case where Tata Steel has emerged as the highest bidder, but the case has landed at NCLT’s doors. Tata Steel and UK-based Liberty House are locked in another legal dispute over Bhushan Power. alleged that Bhushan Steel, undergoing corporate resolution, has defaulted on payment for the construction of its Anugul factory in Odisha. The infra major said that it should not be treated as an operational creditor.

The counsel argued that it should get the status of a secured creditor. If it was considered an operational creditor, it would not be able to retrieve its dues, said. Advisors to the committee of creditors and Resolution Professional of were currently engaged in discussions with Tata Steel over the resolution plan, a Tata Steel statement said yesterday. The next steps in the process would be in line with the stipulations under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC). Neeraj Singhal-promoted had received resolution plans from JSW Steel and employees of The Odisha-based company operates a 5.6-million-tonne capacity and is a high-margin flat product business that can cater to the domestic as well as the export auto market. As on March 31, 2017, had a debt of Rs 481 billion.

First Published: Thu, March 08 2018. 12:43 IST
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