For Quick Alerts
For Daily Alerts

Tata Steel Selected To Buy Insolvent Bhushan Steel


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).

Tata Steel Selected To Buy Insolvent Bhushan Steel

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).

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.

Story first published: Friday, March 23, 2018, 13:13 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more