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Bhushan Steel lenders decide against seeking fresh bidding

Bhushan Steel lenders decide against seeking fresh bidding

Bhushan Steel lenders decide against seeking fresh bidding
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By CNBC-TV18 May 2, 2018 10:48:34 AM IST (Published)

The development came after 45% of the lenders voted against a proposal seeking fresh bids on Tuesday.

Bhushan Power and Steel’s lenders have decided not to seek any fresh bids for the company, reported The Economic Times.

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According to the report, the stand against fresh bidding comes due to concerns that this may lead to offers way below Rs 18,500 crore currently offered by Liberty House.
The development came after 45% of the lenders voted against a proposal seeking fresh bids on Tuesday, the report said. The voting took place after the NCLT directed lenders to consider the offer made by Liberty House submitted after the deadline.
The offer by the group is significantly higher than the other offers. As per report, Tata Steel and JSW Steel, the other two bidders for Bhushan Power and Steel had submitted offers of Rs 17,000 crore and Rs 11,000 crore respectively.
In addition, the report added that there was also a fear that another round of bidding would further complicate the process. “There are also fears that going for rebidding could lead to another round of litigation, which we want to avoid,” a senior official was quoted saying in the report.
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