Tata Steel to pay Rs 35,200 cr cash for Bhushan Steel; to convert remaining debt to equity

Tata steel, which has emerged as the highest bidder for Bhushan Steel, will pay Rs 35,200 crore in cash to the debt laden firm's creditors and convert over Rs 27,000 crore worth of their loans into equity, the NCLT was informed today.

As on February 1, 2018 Bhushan Steel had a total debt of Rs 57,160 crore, senior advocate Ravi Kadam informed the Principal bench of the National Company Law Tribunal (NCLT) here.

"Tata Steel is the highest bidder (H1) offering an upfront payment of Rs 35,200 crore. Remaining debt would be converted into equity," he said.

Kadam further added: "Financial creditors would get 12.27 per cent of equity of the corporate debtor (Bhushan Steel) subject to SEBI approval."
He added: "JSW steel has not come here in appeal. They have accepted our judgement over the resolution plan."