Liberty House to approach NCLT on Bhushan Power bid rejection by creditors

Bhushan Power and Steel owes about Rs 450 bn to its lenders

Sanjeev Gupta-led Liberty House will be approaching the National Company Law Tribunal (NCLT) in connection with its bid rejection by creditors to acquire debt-laden Bhusan Power & Steel.

"We will go to the NCLT and ask them to direct RP (resolution professional) and CoC (Committee of Creditors) to open our bid," Liberty said in its statement on Thursday. 

The UK-based company has been interested in NCLT-listed entities and has also submitted a revised bid for Amtek Auto on February 9.

"The process is not supposed to deny creditors to recover more money on these bad debts, that would not be fair as this public money. Nowhere in the world, you can have a bizarre system where creditors can deny recovery. We are hopeful NCLT would clarify and our bid would be opened," said Liberty.

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

"Our bid was submitted before bids were opened, so nothing unfair has happened. Our bid is superior in every way, why would the creditors reject a higher offer?," said Liberty.

Liberty House, worth $6.8 billion, has set its eyes on the difficult yet promising Indian market for quite some time now. 

"Our roots are India and we want to come to India, these assets are among the best in the world , they fit perfectly in our strategy for steel and for auto, as BPSL has the best plant in the world for auto steel and we aim to set up EV (electric vehicle) car plant, the same model as we are doing it in Australia, UK and US," informed the company.

The company with a track record of turning around nearly two dozens businesses said it plans to invest $10 billion in India over the next five years if it becomes successful in their bids for these stressed assets. Liberty House, which bought Tata Steel's two mills in Britain last year, has already managed to turnaround the units. 

"We are willing to pay the best as we see great value in these assets. Why deny us? In fact, denying us means denying the country of better recovery both on these liquidation processes and future growth. India needs more competition than monopoly....," said Liberty.

Tata Steel is said to have become the aggressive bidder for both Bhushan Steel and Bhushan Power & Steel assets of NCLT leaving behind the Sajjan Jindal-led JSW Steel.