London-based metals trader Liberty House Group seeks an extension to the deadline for submitting a bid for steel player Bhushan Power and Steel Limited undergoing insolvency resolution, The Economic Times reported, citing a letter sent by Liberty House to an insolvency resolution professional. The deadline for submitting bids was February 8 (last Thursday).
Bhushan Power and Steel is one of 12 large loan defaulters identified by the Reserve Bank of India in its first list for debt resolution under the Insolvency and Bankruptcy Code.
The report cited a source as saying that a Dubai-based group’s request for extending the deadline was declined.
The financial daily had earlier reported that, as part of insolvency resolution of Bhushan Power and Steel, alloy makers Tata Steel and JSW Steel had submitted bids above the target firm’s liquidation value of Rs 10,000 crore.
Sanjay Singhal-promoted Bhushan Power and Steel has a debt of close to Rs 48,000 crore.
In another development, the Delhi high court on Tuesday restrained Srei Infrastructure Finance Ltd-owned fund from selling majority stake in Odisha Slurry Pipeline Infrastructure Ltd to Numetal Mauritius – a special purpose vehicle in which the Essar Group’s owner Ruia family has an interest, according to media reports.
The pipeline is integral to the operations of debt-laden Essar Steel, which is currently undergoing insolvency resolution.
Earlier this week, Numetal and steelmaker ArcelorMittal had submitted final bids for Essar Steel under insolvency resolution plan.
A Numetal spokesperson told The Economic Times that the company will approach all the existing lenders of Odisha Slurry Pipeline asking their consent for the purchase.
Odisha Slurry Pipeline owns a 253-km pipeline, which moves half of Essar Steel’s iron ore, according to the financial daily’s report.
In a related report, Financial Express said the 2015 sale of Essar Steel’s controlling stake in Odisha Slurry Pipeline to Srei Infrastructure Finance is also under stay by the Calcutta High Court following objections by the steel maker’s lenders.
Like this report? Sign up for our daily newsletter to get our top reports.