Financial Express reported that apart from offering to pay INR 36,400 crore to Bhushan Steel’s financial and operational creditors, Tata Steel has also assured financial creditors 12.27% equity in the debt-ridden 5.6 million tonne per annum steel firm promoted by the Singal family.
As per Tata Steel’s resolution plan submitted last week in the National Company Taw Tribunal (NCLT), the company will pay upfront the financial creditors INR 35,200 crore and INR 1,200 crore to its operational creditors over a period of one year. The troubled firm owes INR 56,080 crore to its financial creditors and INR 3,488 crore to operational creditors.
Elaborating the resolution plant, resolution professional’s counsel Ravi Kadam told NCLT on Monday that Tata Steel would also pay INR 27 lakh to Bhushan Steel’s employees and will pay any employees’ due, which might come up in future.
Post-acquisition, Tata Steel will retain all its 353 employees and ring in funds as and when required to run the acquired company.
The RP’s counsel urged the two-member principal bench of NCLT, headed by its president justice MM Kumar, to accept the proposal as 99.9% of the creditors have voted in favour of the Tata Steel’s proposal. However, Bhushan Steel’s employees have moved to the tribunal alleging that the Tata Steel is not qualified to bid under section 29 (A) of the Insolvency and Bankruptcy Code and thus, the decision of the Committee of Creditors was not an informed one. The matter is scheduled to be heard on Tuesday.
Source : Financial Express