Bhushan Steel auction: JSW leads the race, Tata Steel on second spot

In the bid for debt-ridden Bhushan Steel, Sajjan Jindal's JSW Steel has emerged as the front runner, leaving Tata Steel at the second spot. According to banking sources, JSW has offered to take over around Rs 28000 crore debt of Bhushan, in addition to infusing Rs 1000-1500 crore as working capital.
 
"They (JSW) submitted a comprehensive plan detailing the turnaround. They look to cut costs of electricity, logistics and raw materials for making Bhushan profitable," he says.

The Committee of creditors are evaluating all the proposals and contemplating the options of taking more participations to fetch better value for the stressed asset. The bid submitted by the consortium of employees of Bhushan is expected to be rejected as it doesn't prove its financial back up. Also, the resolution professional and the committee of creditors suspect the role of promoters Singhal family in forming the consortium, say sources.

The media reported that Tata Steel submitted a Rs 24000 crore revival plan. Hindu Business Line reported about the chances of ArcelorMittal coming back to the race for Bhushan though they did not tender their resolution plan until the last day of submission.

Business Standard reported that the lenders asked LN Mittal, chairman of ArcelorMittal, to clear the Rs1340 crore debt of KSS Petron, the Kazakhsthan com pany which defaulted the loan in India. Mittal owns 33 per cent stake in its parent company. ArcelorMittal plans to sell its 29.1 per cent stake in another loan defaulter Uttam Galva today for meeting the eligibility criteria to bid for stressed assets.

The resolution professional of Bhushan has asked a set of queries to JSW Steel, including its partner in the bid Ajay Piramal-led Piramal Enterprises' role.

Share price of Bhushan jumped 14 per cent yesterday after speculation on JSW's bid price came to the market.

Economic Times reported that Union Bank of Indiaand Bank of Baroda (BoB) plans to sell the Bhushan Steel loan to Acre ARC, owned by SSG Capital, at a 50 per cent haircut.