Exclusive: JSW Steel leads Bhushan Steel race with a bid of Rs 29,700 cr; bids for Bhushan Power & Steel on Thursday

作者:Cheryl 發表日期:2018-02-09 01:49:03

The bids for Bhushan Steel were opened today, with JSW Steel emerging as the favourite to bag the troubled steel maker. Other bidders included Tata Steel and a consortium consisting of employees of Bhushan Steel.

The company, which had dues of over Rs 50,000 crore, was referred to the National Company Law Tribunal. The bids were submitted on February 3.

Sources privy to the information said that JSW Steel has put in a bid of Rs 29,700 crore. This includes Rs 28,000 crore upfront cash and Rs 1,700 crore as equity to the banks.

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The banks are taking a haircut of nearly 50 per cent.

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"In all probability, a special purpose vehicle will be created for Bhushan Steel," said an industry executive.

Tata Steel's bid is close to Rs 24,000 crore. The bid from 400 of Bhushan employees was rejected as it wasn't backed by a bank guarantee.

A message sent to Vijaykumar Iyer, the Insolvency Resolution Professional for Bhushan Steel, went unanswered.

Sources added that the resolution plans submitted by the bidders are being examined for regulatory compliance. "Once the compliant resolution plan is identified, the IRP will call for a meeting of the Committee of Creditors, consisting of the banks,"  said a source. Once the CoC selects the best plan, it will be submitted to the NCLT for approval.

The NCLT will make the final announcement.

Even as Bhushan Power enters the final few rounds, Bhushan Power and Steel's auction will get a start on Thursday, February 8.

Though both the companies are owned by the Delhi-based Singhal family, a dispute saw the two brothers  - Sanjay and Neeraj dividing the assets in 2011. While Sanjay got the control of Bhushan Power and Steel, younger brother Neeraj - accompanied by patriarch Brij Bhushan Singhal - got Bhushan Steel.

Here again, JSW Steel and Tata Steel are expected to submit bids. They may be joined by Anil Agarwal's Vedanta and AION Capital.

"The bids will be submitted by 2 pm, and may be opened tomorrow itself," said a source.