UK-based Indian-origin steel tycoon Sanjeev Gupta and his Liberty House Group is set to bid for the troubled steelmaker Bhushan Steel. According to a report published in ET, Liberty House has sought an extension to the deadline to submit its resolution plan for the bankrupt company.
"We are also interested in submitting a viable resolution plan for the company," said a Liberty letter addressed to Bhushan Power & Steel.
Gupta, who was in news for buying Tata Steel's assets in Europe, earlier this month made an "unconditional and comprehensive offer" for the assets of two flagship French steel businesses - GreenSteel and GreenAluminium.
" Our participation in the bidding will benefit all the stakeholders, in particular, the lenders, as the ultimate goal of the process is to have the best and most competitive resolution plan for the company in public interest," said the letter, which ET has access to.
The highest bidder for Bhushan Steel was to be announced on February 6, but its announcement was held back.
Employees, JSW Steel, Tata Steel among major bidders
Other than Liberty House, Sajjan Jindal-owned JSW Steel and Tata Steel have emerged as the two serious bidders for debt-laden Bhushan Steel. JSW Steel has offered Rs 300 billion to take over Bhushan Steel, Rs 50 billion more than rival bidder Tata Steel’s offer.
Business Standard earlier reported that the acquisition of Bhushan Steel will be a big win for JSW Steel, which plans to ramp up its capacity from 18 mtpa to 23 mtpa by 2020.
The employees of Bhushan Steel have also submitted an offer for the company.
Bhushan Steel was sent for debt resolution under the Insolvency and Bankruptcy Code after it failed to repay Rs 440-billion debt
Bhushan Steel operates a 5.6 million tonnes per annum capacity plant in Odisha. It was one of the top 12 companies identified by the Reserve Bank of India for debt resolution in June last year.
Bhushan Steel has a debt of Rs 44.47 billion.