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Bhushan Power and Steel Insolvency process set to enter second leg

Steel News - Published on Wed, 06 Dec 2017

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Financial Express reported that the insolvency resolution process for Bhushan Power and Steel is set to enter its second leg, with the committee of creditors about to circulate bid documents among at least eight companies and financial institutions which have evinced interests in acquiring the steel firm. A source said that “Bid document is under finalisation and will be circulated within the next two-three days.”

In September, insolvency resolution professional Mr Mahender Khandelwal had called for qualification documents from interested parties on or before October 6. Apart from the promoters, Tata Steel, Arcelor Mittal, JSW Steel, Vedanta Ltd, Mesco and AION Capital are among companies that evince interest in the firm, which owes lenders close to INR 47,000 crore.

With the recent amendments to the Insolvency and Bankruptcy Code, the promoters can place bid only after clearing the overdue amount including interest and other charges. Sources said apart from these companies, others which have not yet submitted resolution plans can now submit them by December 23.

Bhushan Power and Steel was admitted by the insolvency court on July 26 on a plea by Punjab National Bank. Once a case is admitted, the IRP has to come up with a resolution plan within 180 days, extendable by another 90 days.

The source said that “The delay in finalising the evaluation criteria has made the IRP to extend the deadline for submitting resolutions plans. Also, there were hopes that some other companies might submit their plans. However, no addition to the list of suitors is expected, even as the promoter family is unlikely to take part in the final race.”

The evaluation criteria has now been finalised and approved by the CoC.

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Posted By : Rabi Wangkhem on Wed, 06 Dec 2017
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