NCLT approves Tata Steel's bid for Bhushan Steel

NCLT approves Tata Steel's bid for Bhushan Steel

NCLT approves Tata Steel's bid for Bhushan Steel

Significantly, the tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid and imposed a fine of Rs 1 lakh.

NCLT has also dismissed L&T's plea seeking higher priority in the recovery of a loan as the financial creditor and imposed Rs 1 lakh fine. The CoC had selected Tata Steel, which had offered Rs 32,500 crore as upfront payment along with 12.27 per cent equity in BSL to the creditors.

In a regulatory filing, Bhushan Steel said that the funds received from the investment will be to the tune of 35,132.58 crores and will be used to settle the existing debts of the company. It will be funded through a combination of equity and inter-corporate loans, of which upto Rs 9,000 crore loans have an option of conversion into equity shares of BSL.

The tribunal accepted the plan filed by BSL's resolution professional (RP), which was approved by the Committee of Creditors (CoC) led by SBI, after finding Tata Steel as the highest bidder.

"As per the approved Resolution Plan, BNPL shall be classified as the "promoter" of BSL, and the existing promoters shall be de-classified as "promoters" of BSL for the purposes of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015", the statement added. The employees had contended that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

Khedira in Germany World Cup squad
Gotze scored the winning goal in the 2014 final against Argentina in 2014 to seal the Nationanelf's fourth World Cup. Joachim Loew has revealed his provisional 27-man squad for the upcoming 2018 World Cup in Russian Federation .

JR Smith embraces the NSFW chant from Celtics crowd
We moved on to the next play, and we just locked in even more after that". "One of my guys was down and I took offense to it". You keep letting a bully keep picking on you, he's going to pick on you until you finally stand up. "It was a good call.

Schlumberger (NYSE:SLB) Holdings Cut by RiverPark Advisors LLC
Gabalex Cap Llc has invested 4.84% of its portfolio in Schlumberger Limited (NYSE:SLB). 56,184 are owned by Mai Cap Mngmt. It has underperformed by 27.83% the S&P500. (CPRT) by 16.45% based on its latest 2017Q4 regulatory filing with the SEC.

Bhushan Steel was on the RBI's first list of 12 companies referred to the National Company Law Tribunal past year.

Tata Steel will be taking a 72.65% stake in Bhushan Steel, through its subsidiary Bamnipal Steel Ltd (BNPL).

Bhushan Steel is one of 12 companies transferred to the bankruptcy court in 2017, over a government move to clear bad loans choking credit at Indian banks.

Following NCLT approval the only other nod that is awaited is from the Competition Commission of India (CCI).

Acquisition of BSL will be a key element in Tata Steel's domestic growth strategy under new Tata Sons chairman N Chandrasekaran. This acquisition will not only help it to tighten its grip on the country's eastern region but perhaps also help it to snatch the title of "India's largest steel maker" from JSW Steel. A combination will transform the former into a leading producer of flat steel in India, as the leader is now JSW Steel with about 13 million mt/year of capacity. Bhushan Steel makes flat products like hot- and cold-rolled coil (HR/CR coils) and galvanised sheets. NCLT has also directed BSL's ex-management to cooperate with the monitoring agency during the implementation of the resolution plan and granted it liberty to approach it during the process. The company, which was admitted for insolvency proceedings last February, had defaulted on its ₹56,000-crore loan.

Recommended News

  • Hazard warns Chelsea chiefs: We must buy good players

    Hazard warns Chelsea chiefs: We must buy good players

    To win trophies also. "If we can't be in the Champions League we need the trophy". This season was not good but you know - this is Chelsea. "...
    10 airline employees busted in Dallas-Fort Worth Airport drug trafficking sting

    10 airline employees busted in Dallas-Fort Worth Airport drug trafficking sting

    The defendants were arrested Monday and will make an appearance in federal court later this week, the Justice Department said. Authorities say beginning in 2016 the group used their positions to bypass security and place the meth on flights.
    Google upgrading Google Drive storage plans to Google One

    Google upgrading Google Drive storage plans to Google One

    The new service isn't meant to replace Google Drive; the company will still give 15GB of free storage to each Google account. Brandon Badger, Google's group product manager for Google One, told me the team looked at how people use the storage plan.
  • Oil prices settle lower after USA  decision to leave Iran nuclear deal

    Oil prices settle lower after USA decision to leave Iran nuclear deal

    Facing that reality, Le Maire said the European Union should strengthen its own legal arsenal against any such future USA threats. As a private citizen, Bolton suggested in the past that the United States push for a change in Iran's government.
    Scientists Claim Multiverse May Sustain Life

    Scientists Claim Multiverse May Sustain Life

    But given the levels of dark energy in our Universe, there is likely a natural law we have yet to discover. But the formation of galaxies and other universes is not limited to that.
    Zombieland 2 planned for 10th anniversary release

    Zombieland 2 planned for 10th anniversary release

    It'd be one hell of a gift if this core quartet all returned, especially with a worthwhile story. Rhett Reese and Paul Wernick have become an in-demand screenwriting duo as of late.
  • Mallinckrodt (MNK) Issueds New 52-Week High and Low at $12.13

    The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. Nine analysts have made estimates for Mallinckrodt's earnings, with estimates ranging from $545.60 million to $589.00 million.
    Nokia to take wraps off its X6 smartphone today

    Nokia to take wraps off its X6 smartphone today

    The event is set to take place in China and will kick-off at 2:40PM CST (12:10PM IST), and it will be live streamed as well. On the back, the Nokia X6 will come with a vertical dual camera system which is expected to be Zeiss-branded.
    Cavs aiming to be better in Game 2 vs. Celtics

    Cavs aiming to be better in Game 2 vs. Celtics

    After surviving the testy Milwaukee Bucks in seven games they quickly dispatched the much-hyped Philadelphia 76ers in five. The Boston crowd will be electric, and the Celtics will put up another great performance to take a 2-0 series lead.
  • PNB fraud: Nirav Modi's ex-director moves HC for quashing LOC

    PNB fraud: Nirav Modi's ex-director moves HC for quashing LOC

    The remaining provision of Rs 7,178.42 crore will be made during the first three quarters of the ensuing financial year. The total income for the fourth quarter declined to Rs 12,945.68 crore from Rs 14,989.33 crore in the year-ago period.
    Indonesia police shoot dead four men after attack on Riau HQ

    Indonesia police shoot dead four men after attack on Riau HQ

    The report said that the men had driven their auto into the police yard before getting out to stage the attack. Another man was arrested and four others were suspected to have fled the scene, it said.
    Best Memes of LeBron James & the Cavaliers Crushed by the Boston Celtics

    Best Memes of LeBron James & the Cavaliers Crushed by the Boston Celtics

    They set the tone early, and we weren't able to clean up our boo-boo on our lip, so we've got to be ready to go. I can see that teams overlook us because of our age, and that works to our advantage when they take us lightly.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.