Insolvency resolution: Tata Steel all set to buy stressed Bhushan Steel

This would be one of the biggest debt resolutions for banks as Bhushan Steel's debt stood at Rs 499 billion in 2016-17

Tata Steel on Friday said it has accepted the letter of intent for the sale of Bhushan Steel for an undisclosed amount. According to industry sources, the Tata group firm is likely to pay Rs 352 billion in cash for the deal.

However, there are likely to be hiccups since the National Company Law Tribunal (NCLT) has fixed April 3 as the date for deciding on Larsen & Toubro’s (L&T’s) petition, which had challenged the process, saying its dues of Rs 9.62 billion should be cleared first.

The Committee of Creditors had declared Tata Steel the successful bidder for Bhushan