Operational performance of bankrupt Bhushan Power and Steel, which is currently under corporate insolvency resolution process, has improved since the time it was admitted for insolvency in July last year.
Operational performance of bankrupt Bhushan Power and Steel, which is currently under corporate insolvency resolution process, has improved since the time it was admitted for insolvency in July last year. Apart from capacity utilisation, which has nearly doubled to 90% since the firm’s operation was handed over to the resolution professional, Mahender Kumar Khandelwal, the firm has seen its sales steadily growing to Rs 2,251 crore during the April-June quarter of the current fiscal from Rs 1,731 crore in the July-September quarter of the last fiscal. On the back of higher metal prices, its realisation has also improved.
Though Khandelwal refused to comment on the operational performance of the company, sources said that the improved performance is due to professional handling and infusion of fresh capital aimed at de-bottlenecking. During the corporate insolvency resolution process, a Rs 160-crore capital infusion has been made in the company, which has helped it to improve its performance on various operational parameters.
“Liabilities towards employees dues have also been gradually reduced from Rs 35 crore to zero. Statutory dues have also been brought down from Rs 793 crore to Rs 240 crore,” a source said. Tata Steel, Liberty House and JSW Steel are the three contenders for Bhushan Power and Steel, which has 3.1 million tonne per annum capacity. The committee of creditors have, as per the direction of the National Company Law Appellate Tribunal, submitted the bids in sealed cover to the appellate tribunal. Sources said JSW Steel has placed the highest bid among the three. NCLAT is likely to open the sealed cover in its next hearing on September 24.