On Friday, Tata Steel Ltd. announced that it has been chosen as the successful bidder by Committee of Creditors (CoC) of Bhushan Steel for buying debt-laden company Bhushan Steel Ltd. The decision to this effect was taken by the CoC on Thursday subject to obtaining necessary approvals from the National Company Law Tribunal (NCLT) that is administering the process of insolvency resolution of BSL, resolution professional and the Competition Commission of India (CCI).
In an exchange filing to the BSE the company informed, "Tata Steel Limited identified as the successful Resolution Applicant for acquisition of Bhushan Steel Limited". Bhushan Steel is put for auction as part of the new bankruptcy law in India, Insolvency and Bankruptcy Code (IBC).
Also Read Bankruptcy process
The two major bidders for acquiring a controlling stake in BSL were Tata Steel and JSW Steel. But later, Tata steel was selected as the leading or preferred bidder for buying BSL but the decision was challenged by some of the Bhushan Steel employees. With this decision all controversies around the bankruptcy proceedings of BSL have come to an end.
Bhushan Steel has a steel production capacity of 5.6 million tons of the metal per year. The acquisition will enable Tata Steel to double its production capacity to 26 million tons in five years.
The debt-struck Bhushan Steel is amongst the leading suppliers of forging quality steel in India.