New Delhi: The resolution plan for Bhushan Steel Ltd was submitted to the National Company Law Tribunal (NCLT) on Wednesday for its approval.
The move comes after Tata Steel Ltd was announced as the successful resolution applicant for Bhushan Steel by the committee of creditors (CoC) on Friday.
As per the resolution plan, Tata Steel has offered upfront cash of about Rs35,200 crore to the financial creditors, along with Rs1,200 crore to operational creditors. Bhushan Steel owes about Rs44,000 crore to its creditors.
In a report dated 7 March, Mint said Tata Steel has emerged as the highest bidder for the debt-ridden steel firm, outbidding JSW Steel Ltd.
According to a person familiar with the development, Tata Steel and JSW Steel were the only compliant resolution applicants. JSW Steel had offered Rs27,000 crore for the debt-ridden company, the person said.
Tata Steel will also retain the existing employees of Bhushan Steel, said another person familiar with the development.
Last week, NCLT had directed the CoC to consider objections raised by Bhushan Steel employees over the bid submitted by Tata Steel in its meeting on 13 March.
The case is being heard by a two-member NCLT bench headed by M.M. Kumar.
Bhushan Steel is the largest manufacturer of auto-grade steel in India. The company is into manufacturing of flat products, hot rolled and cold rolled coils, besides operating a galvanised coil and sheet line. Its clients include General Motors Co., Hyundai Motors Co., Ford Motor Co., Mahindra and Mahindra Ltd and Eicher Tractors Ltd.