New Delhi : In a bid to give a tough competition to its competitors, JSW Steel Ltd is expected to double its bid value for debt-laden Bhushan Steel Ltd, a source privy to the development told the Press Trust of India (PTI). The last date to submit bids is February 3, 2018.
On January 24, the insolvency resolution professional (IRP) of Bhushan Steel had extended the deadline for submission of resolution plans to February 3, 2018 from January 25, 2018. “The liquidation value has set been set at Rs 15,000 crore, below that the bid will not be accepted. Looking at the competition, JSW Steel is expected to double its bid amount. It can be between Rs 25,000 crore to Rs 30,000 crore,” the source said on Sunday. Liquidation value is the minimum value set for a stressed asset by the committee of creditors. Below that bid will not be accepted. Meanwhile, Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel are also in the race for Bhushan Steel, which is undergoing insolvency proceedings. JSW Steel has decided to bid for Bhushan Steel, a manufacturer of auto-grade steel in India, with partners. It has roped in its Japanese business partner JFE Steel Corp and Piramal Enterprises, which is the flagship firm of the Piramal Group, for the purpose. Bhushan Steel, one among the 12 non-performing accounts referred by the Reserve Bank of India (RBI) for National Company Law Tribunal (NCLT) proceedings, owes an amount of Rs 44,478 crore to its lenders. According to information published on Bhushan Steel’s website, the toubled firm is the third-largest secondary steel producer in the country, with an existing steel production capacity of 5.6 million tonne per annum. India’s insolvency law has reportedly triggered a contest for steel assets worth some $26bn.
