Mumbai: Cash-strapped Bhushan Steel Ltd on Friday said it had entered into a sale and lease-back arrangement for its oxygen plants in Odisha. The move is expected to ease stress on cash flow.

The company did not specify the proceeds expected from the sale and lease-back.

As per the company’s 2013-14 annual report, the company has three oxygen plants operational at its Odisha facility.

Bhushan Steel has been under pressure from its lenders to pare debt. About 51 banks have a combined exposure of 40,000 crore to the company. The lenders want the company to sell its integrated steel plant in Odisha, Mint reported on 25 November. The company, however, was not in favour of an outright sale.

Bhushan Steel reported a net loss of 454 crore in the three months ended 31 December, compared with a net loss of 54.79 crore in the corresponding period last year.

Bhushan Steel shares ended at 87.20 on the BSE on Friday, down 1.4% while India’s benchmark Sensex rose 1.65% to close at 29,220.12 points.

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