Liberty House has firmed up commitment and backing from banks for its bid for Bhushan Power and Steel, days afters lenders seemed to have picked Tata Steel’s as a favourite.
Though the UK-based group’s bid was higher than Tata Steel’s, “Liberty House's bid did not have the right backing and commitment," two sources aware of the development had told Moneycontrol after a meeting of lenders earlier this week.
Liberty House's offer for lenders was at about Rs 18,000 crore, higher than Tata Steel's offer of about Rs 17,000 crore.
Tata Steel has also provided Rs 7,500 crore for Bhushan Power’s operations.
“The teams are working on the bid... the bankers are very positive about our investment plans,” said an executive who didn’t want to be named.
“Everyone is waiting for the NCLAT hearing on July 12,” added the executive.
Previously, Liberty House had challenged CoC's decision to disqualify it only on the grounds of late submission.
Lenders had approached the insolvency court seeking clarification in the process after Liberty House had put its bid post the deadline.
NCLAT, in last hearing, had asked the CoC to proceed with the bids submitted by both Tata Steel and Liberty House in the first round without any re-bidding.
On April 23, the National Company Law Tribunal (NCLT) had directed the lenders of Bhushan Power and Steel, led by Punjab National Bank, to consider the bid submitted by UK-based Liberty House for Bhushan Power. Allowing the plea of Liberty House, the tribunal directed the CoC to complete its resolution proceedings by June 23.
Tata Steel had also challenged the NCLT’s order to allow Liberty House’s bid to be considered.
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