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NCLT asks Bhushan Steel creditors to consider Liberty House bid

A two-member NCLT bench said that Liberty House bid cannot be disqualified only on the ground of being submitted after the deadline of the resolution professional

Press Trust of India  |  New Delhi 

NCLT

The Tribunal (NCLT) on Monday asked the lenders of & Steel, led by PNB, to consider the bid submitted by UK-based for the debt-ridden company.

Allowing the plea of Liberty House, the tribunal has directed the committee of creditors (CoC) to complete its resolution proceedings by June 23.

A two-member NCLT bench, headed by Justice M M Kumar, said that bid cannot be disqualified only on the ground of being submitted after the deadline of the resolution professional (RP).

"We hope that CoC takes an appropriate commercial decision as per the Insolvency and Code (IBC)," said NCLT.

The tribunal's order came over a petition filed by Liberty House, challenging the rejection of its bid by the RP for and Steel on account of late submission.

Welcoming the order, a said, "The judgement came out today. The NCLT has given the judgement in our favour saying that our bid should be considered for such a good asset. We are really grateful to the court..."

The CoC had in February rejected Liberty House's bid to acquire and Steel, leaving and in the race for taking over the assets of the bankrupt firm.

Liberty House had moved the NCLT on February 26 against the rejection.

Liberty House had submitted before the NCLT that RP rejected its bid to acquire Bhushan Power and Steel without even opening the seal of its offer.

An with refused to comment on the development but said the company at present is focusing on

also declined to comment.

Bhushan Power and Steel Ltd was among the 12 non-performing assets the Reserve Bank had referred for insolvency proceedings in June last year.

The company owes about Rs 450 billion to its lenders.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, April 23 2018. 22:43 IST
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