Tata Steel has offered ₹ 35,200 crore in cash and conversion of the remaining debt of about ₹ 27,000 crore into equity to take over Bhushan Steel, the counsel for the Committee of Creditors (CoC) informed NCLT today.
The creditors would get 12.27 per cent equity in Bhushan Steel, said senior advocate Ravi Kadam to the Principal bench of the National Company Law Tribunal (NCLT) here.
“Tata Steel is the highest bidder (H1) offering an upfront payment of ₹35,200 crore. Remaining debt would be converted into equity,” he said.
Kadam further said: “Financial creditors would get 12.27 per cent of equity of the corporate debtor (Bhushan Steel) subject to SEBI approval.”
As of February 1 this year Bhushan Steel had a total debt of ₹ 57,160 crore.
The company has a financial debt of ₹ 56,051 crore and operational debt of ₹ 1,050 crore, he added.
He further informed that Bhushan Steel has a liquidation value of ₹14,541 crore.
Tata has also offered ₹ 1,200 crore to its operational creditors depending on the criticality to run the company.