Tata Steel has offered Rs 352 billion in cash and conversion of the remaining debt of about Rs 270 billion into equity to take over Bhushan Steel, the counsel for the Committee of Creditors (CoC) informed NCLT on Monday.
The creditors would get 12.27 per cent equity in Bhushan Steel, said senior advocate Ravi Kadam to the Principal bench of the National Company Law Tribunal (NCLT) here.
"Tata Steel is the highest bidder (H1) offering an upfront payment of Rs 352 billion. Remaining debt would be converted into equity," he said.
Kadam further said: "Financial creditors would get 12.27 per cent of equity of the corporate debtor (Bhushan Steel) subject to SEBI approval."
As of February 1 this year Bhushan Steel had a total debt of Rs 571.6 billion.
The company has a financial debt of Rs 560 billion and operational debt of Rs 10.50 billion, he added.
He further informed that Bhushan Steel has a liquidation value of Rs 145.41 billion.
Tata has also offered Rs 12 billion to its operational creditors depending on the criticality to run the company.
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