Bhushan Power's lenders plan to call new offers

MUMBAI: The lenders have decided to launch new bids for Bhushan Power & Steel after one of the bidders JSW Steel has revised its bid by 60% this week to Rs 18,000 crore, two senior officials who did not want not be named.

JSW's bid is higher than that of Tata Steel, which had emerged as a preferred bidder over its rival Liberty House. The Tata group made an offer worth Rs 17,000 crore while JSW Steel offered Rs 11,000 crore on February 12, the last day for bid submission. Liberty House which made its offer 12 days after the proposed deadline Rs 18,500 crore.

"Professional Resolution (PR) Received JSW Steel's Revised Offer.There was a lively discussion on this topic at a three-hour meeting between lenders today. Finally, he decided to invite Tuesday the revised financial proposal of all the candidates, "said one of the officials quoted above. "The lenders have decided to opt for a second call for bids on the grounds that they have not yet voted for the highest bidder, so that there is a possibility to ask for new offers, "he added. JSW Steel told AND that she did not want to comment on this.

Last month, the creditors' committee disqualified Liberty House after failing to provide critical information on financing terms despite repeated reminders. The Tata group therefore appeared as the preferred bidder whereas the JSW bid was not taken into account as it was too low. The new revised JSW offer comes when Tata Steel moved the courts that were questioning Liberty's late offer. The bankruptcy court ruled in favor of Liberty saying that lenders should consider the offer despite late submission.

A recent discussion between the consortium led by Dalmia Bharat and UltraTech Cement for Binani Cements shows that lenders have reviewed bids revised after the deadline in the past. After losing to Dalmia Bharat, UltraTech Cement significantly improved its offer and moved the bankruptcy court when the lenders refused to accept it. The court ruled in favor of UltraTech and its offer was subsequently approved by all lenders when its competitor Dalmia declined to raise his price.

Bhushan Power & Steel is one of the big 12 defaulters that RBI ordered banks to take to bankruptcy court. He faces claims of Rs 49,264 crore from financial creditors.