First under insolvency code: Bhushan Steel bought by Tata Steelhttps://indianexpress.com/article/business/first-under-insolvency-code-bhushan-steel-bought-by-tata-steel-5182619/

First under insolvency code: Bhushan Steel bought by Tata Steel

Neeraj Singhal, former vice-chairman and managing director of Bhushan Steel, is learnt to have moved the National Company Law Appellate Tribunal seeking a stay on the takeover by Tata Steel.

First under insolvency code: Bhushan Steel bought by Tata Steel
Tata Steel said it had taken a controlling stake of 72.65 per cent in BSL and paid the admitted corporate insolvency costs and employee dues, as mandated under IBC.

Tata Steel on Friday announced the completion of its acquisition of Bhushan Steel (BSL) through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL), wrapping up the resolution of the first case under the Insolvency and Bankruptcy Code (IBC), 2016. The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.

In a statement, Tata Steel said it had taken a controlling stake of 72.65 per cent in BSL and paid the admitted corporate insolvency costs and employee dues, as mandated under IBC.

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Finance Minister Piyush Goyal termed the deal as a “historic breakthrough” in resolving legacy issues of banks. “Lenders recovered almost entire principal loan of Bhushan Steel through Rs 36,400 crore transparent bid by Tata Steel and also got 12% stake in company,” he tweeted.

Meanwhile, Neeraj Singhal, former vice-chairman and managing director of Bhushan Steel, is learnt to have moved the National Company Law Appellate Tribunal seeking a stay on the takeover by Tata Steel.

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