Bhushan Steel, the debt-ridden company undergoing insolvency proceeding has today been acquired by steel major, Tata Steel. As per the debt resolution plan, 72.65% stake in the company has been acquired by Tata Steel's unit Bamnipal Steel.
On Friday Jamshedpur based Tata Steel said that the acquisition of Bhushan Steel has been financed with a mix of debt and equity amounting to Rs. 34,974 crore and Rs. 159 crore respectively. In additional, the steel majors, Bamnipal Steel paid as much as Rs. 100 crore to the financial creditors of the company under the debt resolution plan.
An external bridge loan of Rs. 16,500 crore has been taken by Bamnipal Steel and the rest has been financed by Tata Steel. The steel major said, "Bridge loan availed by BNPL (Bamnpal Steel) is expected to be replaced by debt raised at Bhushan over time". Also, Bhushan Steel board now includes nominees of BNPL.