The ongoing corporate insolvency resolution process (CIRP) for Bhushan Power and Steel (BPSL) took an interesting turn on Friday with JSW Steel offering to submit a revised bid.
The ongoing corporate insolvency resolution process (CIRP) for Bhushan Power and Steel (BPSL) took an interesting turn on Friday with JSW Steel offering to submit a revised bid. Thus far JSW Steel’s bid was understood to be lower than that of Tata Steel and Liberty House.
“Ahead of the scheduled meeting of the committee of creditors (CoC), JSW Steel wrote to resolution professional (RP) Mahender Kumar Khandelwal last evening expressing intention to enhance its bid. As the CoC assembled, the RP informed the matter. Other two contenders — Tata Steel and Liberty House — both contested the idea; but the CoC wanted to give all three one final chance to improve their bids.” sources said.
Sources present in the meeting said the CoC argued that since the CIRP for BPSL was not yet over, JSW Steel can certainly raise its offer. Being fair to two others, the lenders have also asked all of them to submit their final bids by Tuesday, when the CoC will meet again to decide on the H1 and H2 bidder.
“All three — Liberty House, Tata Steel and JSW Steel – have been asked to submit their final bids by Tuesday morning,” Khandelwal told FE.
On July 20, the National Company Law Appellate Tribunal (NCLAT) had directed the lenders to identify the top two bids for BPSL and submit the most “viable” bid before the National Company Law Tribunal (NCLT) for its approval. It also said that the NCLT will not give effect to the approval without the appellate tribunal’s prior permission since it was yet to pronounce its decision on whether the late submission of bid by Liberty House for the bankrupt firm was valid or not.
Normally the CoC does not recommend two bids to the NCLT for approval but the NCLAT has asked it to place two choices so that if one of the bid fails, the process does not get delayed and the other one gets the go ahead. In short, the process of selecting the bidders and judging the eligibility will carry on concurrently.