In a dramatic twist, Sajjan Jindal's JSW Steel has revised its offer for Bhushan Power & Steel to Rs 180 billion, prompting the committee of creditors (CoC) to invite fresh offers from bidders.
JSW Steel sent a letter with the revised offer to the CoC on Thursday night, a day before the committee's meeting to finalise the offer. JSW is offering lenders an upfront payment of Rs 180 billion.
Sources close to the development said the CoC on Friday gave time to the bidders to revise their offers by 9 am on July 31. A CoC meeting will be held at 10 am.
Liberty House would revise its offer, said a company official. However, both Tata Steel and Liberty House were understood to have opposed the idea of revised bids during Friday's meeting.
Earlier, JSW Steel's offer to lenders was Rs 110 billion as upfront payment, and the total bid value was Rs 170 billion. The revised bid value, including capital infusion, now stands at Rs 240 billion.
The lenders were supposed to take a final call on the Bhushan Power & Steel bids in accordance with the National Company Law Appellate Tribunal (NCLAT) order. Vacating its earlier stay, the appellate tribunal had directed the CoC to consider the resolution plans submitted by three firms. These firms are Tata Steel, Liberty House and JSW Steel. The NCLAT also directed the CoC to call all the three bidders along with operational creditors and suspended board of directors to the meeting.
So far, JSW Steel has bagged Monnet Ispat & Energy, a 1.5 million tonnes per annum (mtpa) plant, under the Insolvency and Bankruptcy Code (IBC), even though it had bid for Bhushan Steel and Bhushan Power & Steel.
Bhushan Steel was acquired by Tata Steel. Bhushan Power & Steel, in fact, was also a two-way race initially. Tata Steel and JSW Steel had submitted their bids within the deadline. However, Liberty House made a late bid.
The CoC had rejected Liberty House's bid on grounds of late submission but the National Company Law Tribunal (NCLT) asked the CoC to consider it. Tata Steel had challenged the NCLT order in the NCLAT, but no stay on the proceedings was granted.
Bhushan Power & Steel has a 3 mtpa plant and debt of Rs 470 billion.