New Delhi, May 21 (PTI) Tata Steel sees opportunities for synergy with Bhushan Steel, which it acquired under the corporate insolvency resolution process, a top company official said today. Also Read - Three Years After Sacking, NCLAT Restores Cyrus Mistry as Executive Chairman of Tata Group
Speaking on the successful acquisition of debt-laden Bhushan Steel, Tata Steel CEO and MD T V Narendran said it was the best asset on block. Also Read - Tata Steel Asks LGBTQ Employees To Declare Partners To Avail HR Benefits, Progressive Move Lauded
The remark by Tata Steel chief came after a meeting with the senior officials at the South Block here. Also Read - Tata Steel to Slash 3,000 Jobs in Europe For Aid Transformation
A senior official of Tata Steel said it was a “routine meeting”.
“We see a lot of opportunities for synergies because it is a mill and (has) configuration with which we are very familiar. We know the blast furnace. It has a rolling mill with excess capacity. It is close to where we are currently operating. It takes years to build a plant, It took 10 years for Kalinganagar,” Narendran told reporters.
On a petition filed by Bhushan Steel promoter Neeraj Singal in NCLAT challenging the eligibility of Tata Steel as resolution applicant under Section 29 A of the Insolvency and Bankruptcy Code, he said: “Tata Steel has gone through the process. I understand it is difficult to lose an asset which you have created”.
The National Company Law Appellate Tribunal (NCLAT) today declined to stay Tata Steel’s acquisition of Bhushan Steel under the corporate insolvency resolution process and issued notices to Tata Steel, the resolution professional and Committee of Creditors (CoC) of Bhushan Steel on the petition filed Singal challenging the sale.
Tata Steel has won the bid to acquire Bhushan Steel Ltd (BSL) in an insolvency auction. The company has also successfully completed the acquisition of controlling stake of 72.65 percent in Bhushan Steel Ltd (BSL) through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL).
Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes Rs 44,478 crore to its lenders.
As per the company’s website, it is the third largest secondary steel producer in the country with the annual capacity of 5.6 million tonnes.