Liberty House submits bid for Bhushan Power

Mumbai: UK-based Liberty House has become a last minute entrant in the race to acquire Bhushan Power and Steel Ltd, according to two people aware of the matter. The firm submitted a sealed bid to the resolution professional of the beleaguered power firm on Tuesday evening, pitting it against Tata Steel Ltd and JSW Steel Ltd.

Bhushan Power, which owes at least Rs37,000 crore to a consortium of lenders led by state-run Punjab National Bank (PNB), is among the 12 large companies identified by the Reserve Bank of India (RBI) for early insolvency resolution.

The official bidding deadline for Bhushan Power was on 8 February. “Liberty House, however, wrote a letter to the resolution professional expressing interest with respect to submitting a resolution plan. Subsequently, the firm was allowed to submit a resolution proposal,” said one of the people cited earlier.

Mahendra Khandelwal, the resolution professional for Bhushan Power, declined comment. A Liberty House spokesperson confirmed the development, stating it has the required experience in turning around firms and modernizing them.

The second person cited earlier said that the committee of creditors will be evaluating the bid on Wednesday. “It is a sealed bid. The resolution plan will be assessed by the creditors tomorrow,” he said.

Mint reported on 9 February that Tata Steel Ltd and JSW Steel Ltd have submitted binding bids for Bhushan Power. The liquidation value and the fair value have been fixed at Rs9,000 crore and Rs24,000 crore, the report said.livemint