Published: Wed, May 16, 2018
Technology | By Lionel Gonzales

Tata Steel finally bags Bhushan Steel; NCLT imposes fine on two challengers

Tata Steel finally bags Bhushan Steel; NCLT imposes fine on two challengers

In a regulatory filing on Tuesday, Tata Steel said that as per the terms of approved resolution plan, BNPL will initially subscribe to 72.65 per cent equity share capital of BSL at face value - Rs 2 per share - for an aggregate amount of Rs 158.89 crore.

Amid the approval, the tribunal dismissed pleas by Bhushan Steel Employees Union and creditor Larsen & Toubro against the plan.

"The financial creditors shall receive a total consideration of Rs 35,200 crores for the settlement of the existing financial debt of BSL", Tata Steel said.

Tata Steel would also be infusing Rs9,000cr in the form of an inter-corporate loan, which would have the option to be converted to equity.

However, some employees of Bhushan Steel had challenged it before NCLT contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

Facebook announces 'Youth Portal' for teenager safety
But both of those descriptions link to the company's longer and more complicated explanations intended for the general public. Earlier this month, as a test, it started showing some of the tips to an unspecified number of teens in their News Feeds.

Jay Ajayi sued for allegedly trashing mansion, shoving owner
He appeared in seven regular-season games, rushing for 408 yards with a touchdown, and all three of the Eagles' postseason games. The owner is calling the incident "battery" and told TMZ Sports that he had to call security to remove Ajayi from the property.

USA diplomat involved in deadly crash leaves Pakistan
The departure of U.S. military attache Colonel Joseph Emanuel Hall was reported by Pakistani officials and confirmed by the U.S. Over the weekend, Pakistan refused to allow Hall to fly back home in a special plane sent by his country.

Tata Steel's subsidiary Bamnipal Steel Limited will acquire the majority equity of Bhushan Steel Limited.

While it was awaiting the nod from the insolvency court, Bhushan Steel employees and L&T filed petitions against it. L&T sought a higher priority in the recovery of loans.

"Based on various acquisition scenarios, the flat steel market in India is expected to consolidate further from the current scenario (of 85% being controlled by six players) to anywhere between three to four players", ratings agency CRISIL said. The Resolution Plan also requires financial creditors to invoke pledge on existing equity shares of BSL.

Electrosteel owes lenders over ₹13,000 crore, of which about ₹5,000 crore is to State Bank of India alone.

Acquisition of BSL will be a key element in Tata Steel's domestic growth strategy under new Tata Sons chairman N Chandrasekaran. 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. With Tata Steel tipped to enter into a joint venture with ThyssenKrupp of Germany for its European steel business, the focus is clearly back on growth in India. Now about 38 companies are at different stages of the insolvency process.

Like this: