Leading the race for Bhushan Steel, Tata Steel today said it has been identified as the highest bidder for acquiring controlling stake in the debt-ridden firm undergoing insolvency proceedings. Besides, Tata Steel, JSW Living Pvt Ltd (a joint venture between JSW and Piramal Enterprises), and a consortium of the Bhushan Steel's own employees had submitted bids to take over assets of the bankrupt firm. The last day to submit bids was February 3, 2018. Tata Steel "has received a formal communication from the resolution professional (RP) of Bhushan Steel Ltd that it has been identified as the highest evaluated compliant resolution applicant to acquire controlling stake of BSL under Corporate Insolvency Resolution Process (CIRP) of the IBC, as decided in the meeting of CoC of BSL on March 6," it said in a statement. The advisors to the Committee of Creditors (CoC) and the RP of BSL are currently in discussions with Tata Steel on the resolution plan, the statement said. "The next steps in the process will be as per the stipulations under CIRP of the IBC," it added. Meanwhile Bhushan Steel, in a regulatory filing to the BSE said, "the compliant resolution plans were presented to the CoC in its meeting held on March 6 and the resolution plan submitted by Tata Steel Ltd has been identified as the highest evaluated compliant resolution plan." It added that there will be further discussions with Tata Steel on their resolution plan before it will be considered for final approval by the CoC. Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes Rs 44,478 crore to its lenders.
As per Bhushan Steel's website, it is the third largest secondary steel producer in the country with an annual capacity of 5.6 million tonne. Tata Steel Group is one of the world's largest steel companies with a steel production capacity of approximately 27.5 million tonnes per annum (MTPA) as on March 31, 2017. Tata Steel is also in the race for other stressed companies undergoing insolvency proceedings. Apart from Electrosteel, the company is said to have submitted bids for and Bhushan Power and Steel Ltd as well.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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