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The employees of Bhushan Steel have moved the National Company Law Tribunal (NCLT) against Tata Steel’s bid. Tata Steel has been the highest bidder for the steel company that is undergoing insolvency proceedings.
The Delhi bench of the NCLT has asked the committee of creditors (CoC) to consider the objections raised by the employees of the company and communicate them to the tribunal. Bhushan Steel’s creditors will be meeting today.
Advisors to the CoC and the resolution professional of Bhushan Steel are currently in discussions with Tata Steel on the resolution plan, the company said. Next steps in the process would be according to the stipulations under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016. Neeraj Singhal-promoted Bhushan Steel had received resolution plans from Sajjan Jindal-led JSW Steel and Bhushan Steel’s employees. The Odisha-based firm has a capacity of 5.6 million tonne and is a high-margin flat product business, which can cater to the domestic as well as the export auto market.
As of March 31, 2017, Bhushan Steel had a debt of Rs 481 billion.