UK-based Liberty House is the likely contender to acquire Bhushan Power & Steel after creditors rejected a proposal to initiate rebidding for the steel company after it offered an upfront payment of Rs 18,500 crore (USD 2.774 billion), Rs 1,500 crores (USD 225 million) higher than Tata Steel. Rebidding would have allowed Tata Steel and JSW to revise their previous offers. The previous JSW bid was lower than Tata’s.
Liberty House had also offered to honor bank guarantees obtained by the steel maker for certain financial commitments to counterparties as well as a working capital infusion. Liberty House’s bid was initially rejected by the committee of creditors led by State Bank of India because it was submitted past the February 8 deadline for submission of binding offers for the company. Upon appeal to the National Company Law Tribunal its bid was recognized within the past week.