industry

Lenders to vote on JSW’s new offer


New Delhi: Lenders to bankrupt Bhushan Power and Steel (BPSL) have decided to put to vote a revised financial offer from JSW Steel that trumped earlier bids by Tata Steel and Liberty House, though it was submitted in August , months past the original bid deadline of February 8.

JSW Steel was among the first lot of bidders for the steel company that owes over Rs 43,000 crore, but its first financial offer that was submitted within the stipulated timeline was significantly lower than that of Tata Steel’s.

JSW had initially offered upfront payments of Rs 11,500 crore to BPSL’s lenders against Tata Steel’s offer of Rs 17,000 crore.

Though Tata’s offer was the highest in the bidding process, it was subsequently trumped by UK’s Liberty House that made an offer of `18,500 crore to Bhushan Power’s lenders, well past the deadline.

Liberty’s belated bid was entertained by the lenders under instructions from the insolvency court, though Tata has challenged that decision at an appellate tribunal.

JSW unexpectedly revised its offer for Bhushan Power on August 13 on grounds that the operational performance had improved significantly since it was first admitted into insolvency proceedings in June last year.

JSW Steel has offered Rs 19,300 crore to the lenders.

Bhushan Power’s resolution professional Mahender Khandelwal will submit the results of voting on JSW’s offer to the National Company Law Appellate Tribunal (NCLAT) on Monday.

NCLAT is hearing Tata Steel’s appeal against Liberty House.

Khandelwal declined comment when contacted.

Bhushan Power has steel-making capacity of 3.1 million tonnes per annum and is promoted by Sanjay Singhal, an estranged member of the family that is also the promoter of Bhushan Steel.

The Singhals lost control of their respective companies after defaulting on payments to banks.

The company has announced bonus payouts to workers, is operating plants at over 90% capacity utilisation and has been growing sales each quarter, according to people in the know.





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