The National Company Law Tribunal (NCLT) today reserved its order over the bankruptcy petition filed by the country’s largest lender SBI against Bhushan steel Ltd.
A bench headed by Justice MM Kumar also reserved order on the plea filed by Punjab National Bank (PNB) against Bhushan Steel & Power Ltd.
The NCLT, on July 13, issued notices to Bhushan Steel Ltd as well as Bhushan Steel and Power Ltd over insolvency proceedings initiated by their lenders State Bank of India and PNB. The companies were directed to file their reply.
Both the petitions were filed under the Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, where the financial creditor initiates insolvency proceedings with a claim.
While SBI is the lead banker to Bhushan Steel, PNB is the lead banker to Bhushan Steel and Power.
SBI is claiming to recover Rs 4,295 crore from Bhushan steel along with USD 490 million foreign currency loan.