Lenders Reject Liberty House’s Late Bid For Bhushan Power & Steel
Lenders rejected the bid submitted Liberty House to acquire insolvent Bhushan Power & Steel.
Lenders rejected the bid submitted by U.K.-based metals and engineering firm Liberty House to acquire insolvent Bhushan Power & Steel Ltd., two people aware of the matter told BloombergQuint requesting anonymity.
The resolution plan received last evening was disqualified by the committee of creditors because it was submitted after the deadline ended, one of the people quoted above said. Banks will continue negotiation with the highest bidder Tata Steel Ltd. and the final decision will be taken by March 6, he said.
Liberty House, which had acquired some of the U.K. assets of Tata Steel, submitted a sealed bid to the resolution professional of the debt-laden Bhushan Power & Steel. It owes more than Rs 47,000 crore to lenders, according to information on its website. The company was among the first 12 stressed accounts identified by the the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code.
Besides Tata Steel, JSW Steel Ltd. is the other bidder in the fray. Tata Steel is the frontrunner with its Rs 24,500 crore offer compared with JSW Steel’s Rs 13,000 crore, BloombergQuint reported earlier.