LIBERTY HOUSE TO BID FOR BHUSHAN STEEL

UK-based LibertyHouse Group is set to bid forBhushan Steel and ABG Shipyard, both of which are facing insolvency. Sanjay Guptaled Liberty House is evaluating four Indian companies, in different sectors, undergoing insolvency resolution — two in steel, one in shipyard, and one in automobile component.

The UK-based Liberty House Group is set to bid for debt-laden Bhushan Steel and ABG Shipyard, both of which are facing insolvency proceedings.

The Sanjay Gupta-led Liberty House is evaluating four Indian companies in different sectors undergoing insolvency resolution, two steelmakers, one shipyard and one automobile components manufacturer.

“In the case of Bhushan Steel, the resolution professional has invited us to bid for the asset. For ABG Shipyard, the company has revived interest, but is still evaluating the asset on various parameters,” sources in the know said. “There were concerns over ABG Shipyard even when Liberty was in talks to buy a stake before it went into insolvency resolution,” the sources added.

Liberty House appears to be interested in National Company Law Tribunal-listed companies. It submitted a revised bid for Amtek Auto on February 9. The London-based company bought Tata Steel’s two pipe mills in Britain last year.

The Sajjan Jindal-owned JSW Steel and Tata Steel submitted their bids for Bhushan Steel early this month. Bhushan Steel, which has a 5.6-million tonne (mt) plant in Odisha, is saddled with debts of ~44.4 billion.

“We will be submitting bids for Bhushan Steel in the next couple of weeks,” said a Liberty House executive. He said the company was invited to submit bids for the unlisted Bhushan Power & Steel by an insolvency resolution professional.

However, an executive of Punjab National Bank said the lead lender for Bhushan Power & Steel was not aware of the invitation extended to Liberty House.

He said a meeting with the resolution professionals would be held in the next two or three days.

Deloitte is the resolution professional for Bhushan Steel and Bhushan Power has been assigned to advisory firm BDO.

Bhushan Steel is owned and controlled by Brij Bhushan Singal and his younger son Neeraj, while Bhushan Power and Steel is owned and controlled by Brij’s elder son Sanjay.

Unlisted Bhushan Power ran into trouble after its licenses for iron ore and coal mines were cancelled.