Liberty House offers over Rs 26K cr for Bhushan Power and Steel

Liberty House offers over Rs 26K cr for Bhushan Power and Steel
28/04/2018 , by , in ALLIED

UK-based Liberty House has offered over Rs 26,000 crore for acquiring the stressed assets of Bhushan Power & Steel Ltd (BPSL), leading Tata Steel and JSW in the race.

The National Company Law Tribunal (NCLT) has asked BPSL lenders, led by PNB, to consider the bid submitted by Liberty House for the debt-ridden company. It owes about Rs 45,000 crore to the lenders.

“In the meeting of Committee of Creditors (CoC) held today, the bid of Liberty House was opened. The consolidated bid amount offered by the UK-based firm for the stressed assets of BPSL was over Rs 26,000 crore,” said a source privy to the development.

Tata Steel had earlier offered Rs 17,000 crore to the lenders as upfront amount and Rs 7,200 crore for operations of Bhushan.

JSW Steel made an offer of Rs 11,000 crore to the lenders and Rs 2,000 crore 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 BPSL’s resolution professional (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 to acquire BPSL 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 SBI, the lead bank of the consortium of lenders, in the case of Bhushan Steel. A similar plea was filed by Punjab National Bank against Bhushan Power and Steel.


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