Tata Steel Confirms It Is The Highest Bidder For Bhushan Steel
Tata Steel Ltd. today said that it has been identified as the highest evaluated compliant resolution applicant for Bhushan Steel Ltd, under the insolvency and bankruptcy process.
The steelmaker is currently in discussions with the resolution professional and advisors to the Committee of Creditors on the resolution plan it had submitted, it said in an exchange filing today.
Last month, BloombergQuint reported that Tata Steel is likely to bag both Bhushan Steel and Bhushan Power & Steel Ltd., as it has outbid JSW Group for both assets.
Tata Steel’s resolution plan ensures that financial creditors to Bhushan Steel receive Rs 35,000 crore, against their claim of Rs 55,000 crore, people familiar with the matter told BloombergQuint earlier. Similarly, operational creditors are said to receive Rs 1,200 crore while Rs 9,000 crore will be infused into the company for working capital needs.
Bhushan Steel is one of the largest stressed assets being resolved under the Insolvency and Bankruptcy Code. It is one of the 12 large accounts which were sent to the National Company Law Tribunal by lenders following Reserve Bank of India's directive.