Bankruptcy Cases: Two close to resolution; six at different stages; four nowhere–09.03.2018

The creditors have chosen Tata Steel and UK-based Liberty House for running the bankrupt companies Bhushan Steel and Amtek Auto, respectively. Of the remaining 10 big companies taken to National Company Law Tribunal (NCLT) for finding resolution under the Insolvency and Bankruptcy Code (IBC), six are at different stages and the final selection of the highest bidders are expected by next month. Of course, there are legal hurdles in the way of taking the final call in some cases. In the rest four cases— Jyoti Structures, Alok Industries, Lanco Infratech and Era Infra— the proceedings are yet to gain momentum. A status check.
Bhushan Steel
Tata Steel emerged as the highest bidder of the company, with a Rs 36,000 crore resolution plan and 12 per cent equity offering to lenders. JSW Steel was another bidder in race for the company.
Amtek Auto
Liberty House has emerged as the highest bidder for Amtek Auto. American hedge fund Deccan Value had also submitted the bid for the auto component manufacturer. The deal value is expected to be around Rs 4,500 crore.
Essar Steel
ArcelorMittal and NuMetal, a consortium backed by VTB Group and estranged promoter Rewant Ruia, had submitted the bids. The sources say that the sale will be delayed as creditors of Essar pushed back the decision after the eligibility of the bidders was questioned. ArcelorMittal held stake in another bankrupt company Uttam Galva.
Jaypee Infratech
JSW Group is believed to be the highest bidder for Jaypee Infratech’s assets, with an offer of around Rs 9,900 crore. The Interim Resolution Professional had received six offers, including from Adani group and Jaypee Infratech’s parent company Jaiprakash Associates. The final decision is expected in this month.
Monnet Ispat
There is only one bid for Monnet. The resolution plan was submitted jointly by JSW Steel and AION Capital and the final decision is expected by third week of March, says a banking source. The media reported that JSW-AION submitted a Rs 3,750 crore bid for the steelmaker.
ABG Shipyard
UK-based Liberty House has become the sole bidder for the Ahmedabad-based shipbuilding company after Shapoorji Pallonji group withdrew from the race. The company is believed to have offered Rs 3,000 crore for the beleaguered shipyard.
Bhushan Power and Steel
The resolution plan for the steel company is likely to be finalised in this month. Earlier reports said that Tata Steel is the highest bidder with Rs 24,500 crore offer, ahead of JSW Steel. But Liberty House went to NCLT against the resolution professional and lenders to Bhushan Power and Steel for not accepting its offer.
Electrosteel Steels
Vedanta, Tata Steel, and Edelweiss Alternative Assets Advisors and Renaissance Steel India had submitted resolution plans for the company. Reports said that Vedanta was well poised to emerge the preferred bidder. However, Renaissance moved NCLT questioning the eligibility of Vedanta and Tata Steel in submitting the bids.
Apart from the 12 cases, Binani Cement has also attracted quite a few potential bidders. Dalmia Bharat-led consortium has submitted the highest bid for the cement maker, according to the sources. The consortium-which also has Bain Piramal Resurgence Fund— has offered a Rs 6,700-crore, nudging out Aditya Birla Group’s UltraTech Cement. But UltraTech has challenged the proceedings at the Kolkata bench of the NCLT, seeking transparency on the bid evaluation. Sources say that the committee of creditors (CoC) has firmed up its decision for Dalmia.

via Bankruptcy Cases: Two close to resolution; six at different stages; four nowhere

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