Kolkata, May 18 (IANS) Tata Steel on Friday said its wholly-owned subsidiary Bamnipal Steel Ltd has completed the acquisition of 72.65 per cent stake in Bhushan Steel Ltd (BSL) in accordance with the approved resolution plan under the corporate insolvency resolution process (CIRP).
“The admitted CIRP cost and employee dues have been paid as required under IBC (Insolvency and Bankruptcy Code). Further, the settlement of the amounts equivalent to Rs 35,200 crore towards financial creditor of BSL is being undertaken… Rs 1,200 crore will be paid to the operation creditors of the company over a period of 12 months,” the steelmaker said in a statement.
The investment from its subsidiary in the insolvent company has been done through a combination of equity of Rs 158.89 crore and inter-corporate loan of Rs 34,973.69 crore.
Additionally, Rs 100 crore has been paid by the subsidiary company to the financial creditors of the bankrupt firm, it said.
The steel maker also said the acquisition is being financed through a combination of external bridge loan of Rs 16,500 crore availed by its subsidiary and balance amount through investment by it in BNPL.