Sajjan Jindal-led JSW Steel, Tata Steel and employees of Bhushan Steel, backed by private fund, are learnt to have submitted bids to buy the troubled steel maker Bhushan Steel.
Confirming the development, a source said, “The bids were opened in front of the bidders and will now be sent to the committee of creditors (CoC). The CoC will take a final call depending upon the resolution plan of the interested parties.”
JSW Steel is learnt to have bid almost double of the liquidation price of Bhushan Steel pegged at ₹15,000 crore. “JSW has offered ₹20,000 crore upfront cash and another ₹8,000 crore for working capital,” said another source in the know of the development, adding that Tata Steel had also submitted bids.
However, a Tata Steel spokesperson declined to comment. Bhushan Steel has outstanding debt of over ₹50,000 crore and was referred to the National Company Law Tribunal.
Steel baron L.N. Mittal-led ArcelorMittal was interested in Bhushan Steel initially, but did not submit bids. ArcelorMittal is learnt to sell its 29.5% stake in Uttam Galva, a company owned by Miglani family, related to promoters of Bhushan Steel.
This move is aimed at making ArcelorMittal eligible to bid for distressed steel assets in India as the new provision of Section 29 of the IBC had barred errant promoters from reacquiring their own assets.
“AreclorMittal may emerge as the dark horse for Bhushan Steel. The lenders may make way for him as was done in the case of Binani Cement, to accommodate new bidders after the bidding was closed. It’s a resolution process and not a liquidation process,” said investment advisor S.P. Tulsian.
