The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked Tata Steel Ltd to file an affidavit stating provisions in the resolution plan, if any, on the fate of Bhushan Steel’s outstanding income tax, goods and services tax, and other local taxes.
The appellate tribunal also directed Tata Steel to inform the court about the total outstanding financial dues, including the amount owed to operational creditors, and the statutory debt of Bhushan Steel.
The directive came after Abhishek Manu Singhvi, counsel appearing for Tata Steel informed the appellate tribunal that it had paid paid Rs. 35200 crore to the financial creditors of Bhushan Steel “against all verified claims”.
Earlier this month, Tata Steel had announced its acquisition of Bhushan Steel through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL), completing the resolution of the first case under the Insolvency and Bankruptcy Code (IBC), 2016.
The appellate tribunal was hearing an appeal by Bhushan Steel promoter Neeraj Singal challenging an order of the National Company Law Tribunal (NCLT) approving Tata Steel’s resolution plan for the debt-ridden company.
Larsen and Toubro Ltd, which has a claim of over Rs900 crore against Bhushan Steel, has moved a separate appeal against the approval granted to Tata Steel’s resolution plan, saying that it is oppressive against operational creditors.
On 15 May, The NCLT’s principal bench approved Tata Steel’s resolution plan promising an upfront payment of Rs35,200 crore to lenders, along with a 12.27% stake in the steel maker.
Tata Steel’s resolution plan had proposed to pay Bhushan Steel’s operational creditors Rs1,000 crore, and another Rs200 crore on a pro-rata basis over one year, depending on the “vitality to run the business”.
The matter would be next heard on 3 July.
SOURCE: Livemint, May 30, 2018