Bhushan Power and Steel Limited is currently undergoing resolution under Insolvency and Bankruptcy Code in India. Tata Steel Ltd and JSW Steel Ltd, has emerged as final bidders for Bhushan Power and Steel Limited.
The Company received 13 expressions of interest buy only two bids were finally submitted. The bids were opened for a select group of lenders, lawyers and insolvency resolution professional appointed in the matter to ensure that they are fully compliant with the requirements.
Bhushan Power and Steel's liquidation value stands at Rs 10,000 crore. JSW Steel's bid values the beleaguered steel company at Rs 13,000 crore.
Bhushan Power and Steel owes more than Rs 47,000 crore, according to the information on its webpage. The company is into the production of flat and long steel products and has plants located in Chandigarh, Derabassi, Kolkata, and Odisha. The company's total production capacity stands at 3.5 million tonnes per annum.
The company is one of the 12 large companies which were referred to the National Company Law Tribunal in June 2017, after the Reserve Bank of India directed the banks to do so. These 12 companies together contributed about 25 percent of the banking system's gross non-performing assets (NPA) as of March 2016.