Investment firm SSG Capital in talks to buy stake in Bhushan Steel

MUMBAI: Asia-focused special situations investment firm SSG Capital Management is interested in acquiring a stake in distressed steel company Bhushan Steel Ltd, said two people aware of the development.

“Bhushan Steel promoters have been out in the market to bring in an investor who can bring in equity capital of at least around ₹900 crore. SSG is one of the financial investors that has shown an interest in the asset and has been in talks with the promoters,” said one of the two people cited above, requesting anonymity as he is not authorised to speak to reporters.

Bhushan Steel’s debt stands at ₹42,355 crore as of March 31, 2017.

However, the chances of the talks resulting in a deal have been slowed down as the National Company Law Tribunal (NCLT) admitted an insolvency case filed against the company by SBI.

“While SSG is interested in the asset, given that the case has been admitted in the NCLT, they will now have to wait for the process to take its course, and wait for the insolvency professional to come up with a resolution plan,” said the second person cited above, also requesting anonymity.

The NCLT on July 26 allowed banks to initiate insolvency proceedings against Bhushan Steel.

Emails sent to Neeraj Singhal, MD and chief executive officer at Bhushan Steel, and SSG Capital did not elicit any response.