NCLAT asks RP, CoC of Bhushan Power to address Liberty House's grievances

Liberty House had challenged the creditors' decision to reject Bhushan's bid on grounds of late submission

The National Company Law Appellate Tribunal (NCLAT) on Monday directed the resolution professional and Committee of Creditors (CoC) of Bhushan Power & Steel to address grievances of Liberty House, one of the bidders for the asset along with Tata Steel, after the UK-based company pleaded for the same.

“As part of grievances, Liberty had stated that the company was not informed of the meeting scheduled on July 9. Also, the company’s request for the copy of the minutes of the meeting on June 11 remained unanswered,” sources close to the development said.

The company adhered to all the procedures and submitted all the documents to the CoC, but did not get any acknowledgement of the same, the sources added.  

“Both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) directed the resolution professional and the CoC to ensure our bid was considered at the next hearing on July 12. Our bid is better so we will keep fighting,” Liberty House responded via email.

Sanjeev Gupta-led Liberty House recently forayed into the domestic steel market after it secured the approval of the CoC to acquire and revive Odisha-based Adhunik Metaliks.

“The next NCLAT hearing for Bhushan Power & Steel is scheduled for July 12 when these factors (points of grievances) will be taken into consideration,” according to the sources.

STORY OF A DEAL

• Rs 450 bn: What Bhushan Power owes to lenders
   
• Liberty House and Tata Steel had emerged the frontrunners for Bhushan Power
   
• The Committee of Creditors last month declared Tata Steel the highest bidder
   
• The next hearing at the NCLAT is slated for July 12

The CoC had in February rejected Liberty House’s bid to acquire Bhushan Power, leaving Tata Steel and JSW Steel in the race for taking over the assets. Liberty House then challenged the CoC’s decision to reject its bid on grounds of late submission.

Later, the NCLT asked lenders to consider Liberty House’s bid, stating bids could only be rejected on substantive grounds, and not due to delays. Tata Steel, seen as the highest bidder for the plant then, moved the NCLAT challenging the NCLT’s order, which had asked the CoC to consider the bid of UK-based Liberty House.

Sanjay Singhal-led Bhushan Power and Steel has a debt of around Rs 450 billion. Last month, Tata Steel formally took control of Bhushan Steel, settling nearly two-thirds of the loans the steelmaker owed to lenders.