Bhushan Power committee of creditors (CoC) decided on June 27 to give bidders time to improve their bids after JSW Steel challenged Tata Steel with an offer increase to Rs 180 billion (US$2.62 billion) from Rs 110 billion (US$1.60 billion).
Tata Steel has stated that a rebid is in contravention of the National Company Law Appellate Tribunal (NCLAT) order and the Insolvency and Bankruptcy Code (IBC) as it had received confirmation of highest bid earlier.
NCLAT previously had not allowed the CoC an appeal for rebid. Liberty House and Tata Steel are in legal battle, once again involving JSW Steel. The fair value of Bhushan Power is estimated at Rs 24,000 crore (US$3.5 billion). Tata Steel was allowed to purchase Bhushan Steel by the NCLAT.
In terms of upfront payments to lenders, the February bids were Tata Steel - Rs 170 (US$2.48 billion), JSW Steel - Rs 110 billion (US$1.60 billion) and Liberty House - Rs 186 billion ($2.71 billion).
The next hearing in the case is scheduled for August 1.