Bhushan Power and Steel creditors to announce highest bidder on March 14

The creditors' panel will next week declare the highest preferred bidder for acquiring the assets of Bhushan Power and Steel amid the resolution process for the debt-laden firm being marred by controversy, sources said.

"The Committee of Creditors (CoC) will meet on March 14 to evaluate the criteria and declare the H1 bidder for Bhushan Power and Steel," a banker privy to the development said.

UK-based Liberty House has moved NCLT to direct creditors and resolution professional (RP) to consider its bid offer to acquire the company as it was rejected by Creditors Committee.

"The lenders which met on March 8 decided to go ahead with the entire process (resolution process of Bhushan Power) . When the judgement of NCLT comes then they (the lenders) will take a call accordingly," said another source close to the development.

When contacted, RP Mahender Kumar Khandelwal declined to comment on the issue.

Liberty House on March 9 presented its argument before the National Company Law Tribunal (NCLT). The next hearing of NCLT is scheduled for Tuesday in which resolution professional will respond.

The RP for the debt-laden firm earlier said that the resolution plan for Bhushan Power and Steel, facing insolvency proceedings is likely to be finalised this month.

With the CoC last moth rejecting the bid of Liberty House to acquire Bhushan Power and Steel Ltd, Tata Steel and JSW Steel are now in the race for taking over the assets of the bankrupt firm.

Bhushan Power and Steel owes about Rs 450 billion to its lenders.

The source had said that while Tata Steel offered Rs 170 billion to the lenders as upfront amount and Rs 72 billion for operations of Bhushan, JSW made an offer of Rs 110 billion to the lenders and Rs 20 billion for the operations of the beleaguered power firm.

Bhushan Steel and Power was among the 12 non-performing accounts referred by RBI for NCLT proceedings.

The insolvency process was filed by SBI, the lead banker of the consortium of lenders, in the case of Bhushan Steel while a similar plea was filed by Punjab National Bank against Bhushan Power and Steel.