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Tatas complete acquisition of Bhushan Steel; deal helps fraud-hit PNB offset some losses from Nirav Modi scam
A Tata Steel sign is seen outside their plant in Scunthorpe northern England, October 15, 2014. India's Tata Steel Ltd is in talks to sell loss-making European operations including mills in northern England and Scotland to Geneva-based Klesch Group, as it battles weak prices and tentative economic recovery. REUTERS/Phil Noble (BUSINESS INDUSTRIAL) - RTR4AAKC

Tatas complete acquisition of Bhushan Steel; deal helps fraud-hit PNB offset some losses from Nirav Modi scam

Bamnipal Steel Ltd (BNPL), a wholly-owned subsidiary of Tata Steel, has successfully completed the acquisition of a controlling stake, of 72.65 percent, in Bhushan Steel Ltd (BSL).

Tata Steel Ltd had won the bid to acquire debt-laden Bhushan Steel Ltd (BSL) in an insolvency auction. The bankrupt firm was among the 12 stressed assets that the Reserve Bank of India (RBI) had referred for NCLT proceedings last year.

“BNPL has successfully completed the acquisition of controlling stake of 72.65 percent 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 said in a statement.

The admitted CIRP cost and employee dues have been paid as required under IBC, it said.

Further, settlement of the amounts equivalent to Rs 35,200 crore towards financial creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction documents, the company said.

Tata Steel said Rs 1,200 crore will 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 approved resolution plan.

“The investment from BNPL in BSL has been done through a combination of an equity of Rs 158.89 crore and inter-corporate loan of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid by BNPL to the financial creditors of BSL as consideration for novation of remaining the financial debt of BSL.