Tata Steel Ltd. has offered Rs 35,200 crore in cash, and conversion of the remaining debt of about Rs 27,000 crore into equity, to take over Bhushan Steel Ltd., the counsel for the committee of creditors informed NCLT today.
Creditors will get 12.27 percent equity in Bhushan Steel, Senior Advocate Ravi Kadam told the principal bench of the National Company Law Tribunal.
“Tata Steel is the highest bidder (H1) offering an upfront payment of Rs 35,200 crore. Remaining debt would be converted into equity,” he said.
Kadam further said: “Financial creditors would get 12.27 percent of equity of the corporate debtor (Bhushan Steel) subject to SEBI approval.” As of Feb. 1 this year Bhushan Steel had a total debt of Rs 57,160 crore.
The company has a financial debt of Rs 56,051 crore and operational debt of Rs 1,050 crore, he added. He further informed that Bhushan Steel has a liquidation value of Rs 14,541 crore.
Tata has also offered Rs 1,200 crore to its operational creditors depending on the criticality to run the company.