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Insolvency process: UK-based Liberty House bids for Bhushan Power and Steel

As of now, Tata Steel seems to be the highest bidder for Bhushan Power and Steel

Veena Mani  |  New Delhi 

Bhushan Steel
Bhushan Steel

UK-based has bid for Bhushan Power and Steel. The creditors would examine its proposal on Wednesday, said sources close to the development.

As the last date for submission of bids was February 8, the resolution professional concerned will not take a decision on whether the bid should be accepted. The ball is in the creditors’ court.

If the bid is accepted, it will be the third one for Bhushan Power and Steel. JSW Steel and Tata Steel have already expressed an interest to buy the heavily indebted firm that was referred to the National Company Law Tribunal (NCLT) by the Reserve Bank of India (RBI). Insolvency professionals said if Liberty House’s proposal was admitted, it might set a trend, with late bids coming in higher than ones submitted within deadline. This might help creditors recover more money from non-performing assets they take to the

As of now, Tata Steel seems to be the highest bidder for Bhushan Power and Steel. Sources said it had offered to pay Rs 170 billion to financial creditors, against JSW’s offer of Rs 110 billion. The finals bids were placed on February 9 and sent to the legal team for scrutiny. SBI Caps will now evaluate the bids.

Around 13 had submitted expressions of interest, but only five qualified for access to the virtual data room. The liquidation value of Bhushan Power and Steel was estimated to be about Rs 90 billion, and its the fair value about Rs 250 billion.

First Published: Wed, February 21 2018. 05:07 IST