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Creditors reject Liberty House bid for Bhushan Power and Steel

Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm

Press Trust of India  |  New Delhi 

Liberty Steel boss Sanjeev Gupta stands outside his newly bought processing mill in Dalzell, Scotland

The has rejected the bid of UK-based to acquire and Steel Ltd, leaving and in the race for taking over the assets of the bankrupt firm, a source said.

"(COC) in a meeting today has rejected the bids of (of the UK) because the company submitted the bids after the last date of submission date which was February 8," a source privy to the development said.

had submitted the bid yesterday, he said.

In today's meeting the bids of and were disclosed and now the process as well as legal advisors evaluate them, the source said.

The detailed terms and conditions of the bids were disclosed to the lenders at the meeting, the source said.

and Steel owes about Rs 450 billion to its lenders.

When contacted, Resolution Professional (RP) Mahender Kumar Khandelwal declined to comment on the developments.

The source said that while 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.

The will now meet on March 6 to take the process forward, including declaration of the highest bidder.

Bhushan Steel and Power was among the 12 non-performing accounts referred by the for National Company Law Tribunal (NCLT) proceedings.

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

First Published: Thu, February 22 2018. 01:21 IST