Insolvency: Liberty House offers over Rs 260 bn for Bhushan Power

UK-based Liberty House has offered over Rs 260 billion for acquiring the stressed assets of Bhushan Power & Steel, leading Tata Steel and JSW in the race.

The NCLT has asked Bhushan Power lenders, led by PNB, to consider the bid submitted by Liberty House for the debt-ridden company. It owes about Rs 450 billion to the lenders. “In the meeting of CoC held on Friday, the bid of Liberty House was opened. The consolidated bid amount offered by the firm for the stressed assets of Bhushan Power was over Rs 260 billion,” said a source privy to the development. Tata Steel had earlier offered Rs 170 billion to the lenders as upfront amount and Rs 72 billon for operations of Bhushan Power. JSW Steel made an offer of Rs 110 billion to the lenders and Rs 20 billion for the operations of the beleaguered power firm. The CoC will meet again next week and take a call on the rebidding.

Allowing the plea of Liberty House, NCLT had earlier directed the CoC to complete its resolution proceedings by June 23. The tribunal’s order came over a petition filed by Liberty House, challenging the rejection of its bid by the Bhushan Power’s RP on account of late submission. Liberty House had moved the NCLT on February 26 against the rejection. The CoC had in February rejected Liberty House’s bid to acquire BPSL, leaving Tata Steel and JSW Steel in the race. 

Liberty House had submitted before the NCLT that RP rejected its bid without even opening the seal of its offer. 

Bhushan Steel and Power was among the 12 non-performing accounts referred by the Reserve Bank for NCLT proceedings. The insolvency process was filed by the SBI in the case of Bhushan Steel.