Bid of Liberty House for Bhushan Steel rejected

New Delhi, February 21 

The Committee of Creditors has rejected the bid of UK-based Liberty House to acquire Bhushan Power and Steel Ltd, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm, a source said.

“Committee of creditors (COC) in a meeting today has rejected the bids of Liberty House (of the UK) because the company submitted the bids after the last date of submission date which was February 8,” a source privy to the development said.

Liberty House had submitted the bid yesterday, he said. In today’s COC meeting the bids of Tata Steel and JSW Steel were disclosed and now the process as well as legal advisers will evaluate them, the source said.

The detailed terms and conditions of the bids were disclosed to the lenders at the meeting, the source said. Bhushan Power and Steel owes about Rs 45,000 crore to its lenders.

When contacted, Resolution Professional (RP) Mahender Kumar Khandelwal declined to comment on the developments.

The source said that Tata Steel offered Rs 17,000 crore to the lenders as upfront amount and Rs 7,200 crore for operations of Bhushan, JSW made an offer of Rs 11,000 crore to the lenders and Rs 2,000 crore for the operations of the beleaguered power firm.

The COC will now meet on March 6 to take the process forward, including declaration of the highest bidder. — PTI