NCLT-named IRP seeks more information related to Bhushan Steel debt resolution
New Delhi: The National Company Law Tribunal (NCLT)-appointed insolvency resolution professional (IRP) on Tuesday sought more information related to the resolution process from Bhushan Steel Ltd’s committee of creditors (CoC).
According to the CoC, around 80% information has already been provided to the IRP and the remaining 20% will be provided in the next 10 days.
The IRP agreed to wait for the next 10 days to get the remaining information on the resolution process, including details from employees.
NCLT appointed Vijaykumar V. Iyer of Deloitte Touche Tohmatsu India LLP as the IRP for Bhushan Steel.
In July last year, the State Bank of India (SBI) moved NCLT against Bhushan Steel, claiming the company had defaulted on loans of over Rs43,000 crore.
Separately, Bhushan Steel’s sister concern, Bhushan Power and Steel Ltd, has also been dragged to the NCLT by Punjab National Bank (PNB) over a default of about Rs37,000 crore.
The two firms together are among the 12 loan defaulters identified by the Reserve Bank of India (RBI) for initiation of insolvency proceedings in the NCLT. On 15 June 2017, the RBI directed banks to initiate insolvency proceedings against the defaulting companies under provisions of the Insolvency and Bankruptcy Code 2016. Acting on this, the SBI and PNB have sought the tribunal’s intervention in the insolvency proceedings against the two firms within the provisions and rules of the new code.
The matter is being heard before a bench headed by NCLT president M.M. Kumar. The next hearing is on 26 March.
Bhushan Steel has manufacturing plants in Odisha, Maharashtra and Uttar Pradesh.