Flagging its strengths in turning around loss-making assets, UK-based Liberty House on Monday pleaded before the National Company Law Tribunal (NCLT) that its bid for Bhushan Power and Steel should be accepted “on merit”.
“I (Liberty House) am not a fly-by-night company. I play in steel in 60 countries and in the last four years, I have acquired 15 companies and turned around most of them,” the counsel for the firm said.
The two-member NCLT bench, led by its president Justice MM Kumar, however, adjourned the matter for further hearing on March 8. As such, the scheduled meeting on Tuesday to further assess the two bids Bhushan Power and Steel received from Tata Steel and JSW Steel within the February 8 deadline stands postponed.
After the committee of creditors (CoC) rejected its bid, which was submitted beyond the deadline on February 20, the UK-based firm moved to the NCLT seeking redress.
In its first hearing on the matter on February 26, the NCLT had asked both the CoC and resolution professional as well as Tata Steel to file replies on Liberty House’s plea.
Tata Steel’s counsel Abhishek Manu Singhvi said that by submitting the bid after the deadline and then, moving to NCLT, Liberty House is actually acting as a ‘spoiler’ in the entire resolution process and thus its plea should not be entertained.
Sources said while Tata Steel has offered Rs 17,000 crore to lenders as repayment and Rs 7,200 crore for operations of Bhushan Power and Steel, JSW has made an offer of `11,000 crore as repayment to lenders and `2,000 crore for the operations of the firm.
Bhushan Power and Steel owes lenders over Rs 47,000 crore, as on March 31, 2017.
According to information received by FE, the fair value of the company has been pegged at close to `25,000 crore and its liquidation value is estimated to be in the range of Rs 10,000-12,000 crore.