Bhushan Power sale: Name of highest bidder to be announced next week
New Delhi: The creditors’ panel will next week declare the highest preferred bidder for acquiring the assets of Bhushan Power and Steel amid the resolution process for the debt-laden firm being marred by controversy, people in the know said.
“The Committee of Creditors (CoC) will meet on March 14 to evaluate the criteria and declare the H1 bidder for Bhushan Power and Steel,” a banker privy to the development said. UK-based Liberty House has moved National Company Law Tribunal (NCLT) to direct creditors and resolution professional (RP) to consider its bid offer to acquire the company as it was rejected by creditors committee.
“The lenders which met on March 8 decided to go ahead with the entire process (resolution process of Bhushan Power) . When the judgement of NCLT comes then they (the lenders) will take a call accordingly,” said another person close to the development.
When contacted, R.P. Mahender Kumar Khandelwal declined to comment on the issue. Liberty House on 9 March presented its argument before the National Company Law Tribunal (NCLT). The next hearing of NCLT is scheduled for Tuesday in which resolution professional will respond.
The RP for the debt-laden firm earlier said that the resolution plan for Bhushan Power and Steel, facing insolvency proceedings is likely to be finalised this month. With the CoC last moth rejecting the bid of Liberty House to acquire Bhushan Power and Steel Ltd, Tata Steel and JSW Steel are now in the race for taking over the assets of the bankrupt firm.
Bhushan Power and Steel owes about Rs45,000 crore to its lenders. The person familiar with the matter had said that while Tata Steel offered Rs17,000 crore to the lenders as upfront amount and Rs7,200 crore for operations of Bhushan, JSW made an offer of Rs11,000 crore to the lenders and Rs2,000 crore for the operations of the beleaguered power firm.
Bhushan Steel and Power was among the 12 NPAs referred by RBI for NCLT proceedings. The insolvency process was filed by SBI, the lead banker of the consortium of lenders, in the case of Bhushan Steel while a similar plea was filed by Punjab National Bank against Bhushan Power and Steel.
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