NEW DELHI: Bamnipal Steel Ltd (BNPL), a wholly-owned subsidiary of Tata Steel, has successfully completed the purchase of controlling stake of 72.65 per cent in Bhushan Steel Ltd (BSL).
Tata Steel Ltd had gained the bid to procure debt-laden Bhushan Steel Ltd (BSL) in an insolvency auction. The bankrupt firm was some of the 12 wired assets the RBI had referred for NCLT lawsuits last year.
"BNPL has successfully completed the acquisition of controlling stake of 72.65 per cent in BSL in accordance with the approved resolution plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC) which has been managed by Vijaykumar V lyer, Partner, Deloitte Touche Tohmatsu India LLP, in his capacity as the resolution professional," Tata Steel stated in a remark.
The admitted CIRP price and worker dues had been paid as required beneath IBC, it stated.
Further, settlement of the quantities similar to Rs 35,200 crore in opposition to monetary creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction paperwork, the company stated.
Tata Steel stated Rs 1,200 crore will likely be paid to operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the licensed resolution plan.
"The investment from BNPL in BSL has been achieved via a mixture of fairness of Rs 158.89 crore and inter-corporate mortgage of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid through BNPL to the monetary creditors of BSL as attention for novation of last monetary debt of BSL.
"The acquisition is being financed via a mixture of exterior bridge mortgage of Rs 16,500 crore availed through BNPL and steadiness quantity via investment through Tata Steel in BNPL. The bridge mortgage availed through BNPL is expected to get replaced through debt raised at BSL over the years," the company stated.
The nominees of BNPL had been appointed on the board of BSL and the prevailing directors of BSL are deemed to have resigned from its board as per the terms of the licensed resolution plan, it stated.
"As per the resolution plan licensed through NCLT, BNPL will likely be categorized as the promoter of BSL, and the prevailing promoters/promoter workforce will likely be re-classified from promoters/promoter workforce to public shareholders of BSL for the needs of SEBI..." Tata Steel stated.
Tata Steel Ltd had gained the bid to procure debt-laden Bhushan Steel Ltd (BSL) in an insolvency auction. The bankrupt firm was some of the 12 wired assets the RBI had referred for NCLT lawsuits last year.
"BNPL has successfully completed the acquisition of controlling stake of 72.65 per cent in BSL in accordance with the approved resolution plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC) which has been managed by Vijaykumar V lyer, Partner, Deloitte Touche Tohmatsu India LLP, in his capacity as the resolution professional," Tata Steel stated in a remark.
The admitted CIRP price and worker dues had been paid as required beneath IBC, it stated.
Further, settlement of the quantities similar to Rs 35,200 crore in opposition to monetary creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction paperwork, the company stated.
Tata Steel stated Rs 1,200 crore will likely be paid to operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the licensed resolution plan.
"The investment from BNPL in BSL has been achieved via a mixture of fairness of Rs 158.89 crore and inter-corporate mortgage of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid through BNPL to the monetary creditors of BSL as attention for novation of last monetary debt of BSL.
"The acquisition is being financed via a mixture of exterior bridge mortgage of Rs 16,500 crore availed through BNPL and steadiness quantity via investment through Tata Steel in BNPL. The bridge mortgage availed through BNPL is expected to get replaced through debt raised at BSL over the years," the company stated.
The nominees of BNPL had been appointed on the board of BSL and the prevailing directors of BSL are deemed to have resigned from its board as per the terms of the licensed resolution plan, it stated.
"As per the resolution plan licensed through NCLT, BNPL will likely be categorized as the promoter of BSL, and the prevailing promoters/promoter workforce will likely be re-classified from promoters/promoter workforce to public shareholders of BSL for the needs of SEBI..." Tata Steel stated.
Tata Steel completes acquisition of controlling stake in Bhushan Steel
![Tata Steel completes acquisition of controlling stake in Bhushan Steel]()
Reviewed by Kailash
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May 19, 2018
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