Sajjan Jindal-led JSW Steel has emerged as the front runner for acquiring debt-ridden Bhushan Steel with an offer to absorb round Rs28,000 crore debt of Bhushan's debt, in addition to infusing Rs1,000-1,500 crore as working capital, reports quoting banking sources said.
The other major bidder Tata Steel is reported to be in the second spot with an offer of a Rs24,000 crore resolution plan.
"They (JSW) submitted a comprehensive plan detailing the turnaround. They look to cut costs of electricity, logistics and raw materials for making Bhushan profitable," reports quoted a bank official as saying.
While ArcelorMittal did not tender a resolution plan until the last day of submission, a consortium of employees of Bhushan Steel is reported to have tendered for the resolution plan.
The employees, however, have not revealed their financing plans and the bid is likely to be rejected. Also, the resolution professional and the committee of creditors suspect the role of promoters Singhal family in forming the consortium, according to sources
The Committee of Creditors is evaluating all the proposals and contemplating the options of taking more participations to fetch better value for the stressed asset.
Media reports suggest a distant possibility of ArcelorMittal coming back to the race for Bhushan once they manage to shed the Uttam Glva promoter tag and resolve other bad asset issues.
Business Standard reported that the lenders asked LN Mittal, chairman of ArcelorMittal, to clear the Rs1,340 crore debt of KSS Petron, the Kazakhsthan company 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.