Priority right to acquisition of Bhushan Power and Steel has got to JSW Steel limited
Company Bhushan Power and Steel was forced to declare bankruptcy. The size of the debt is slightly less of 6.65 billion. Its location on four steel companies. They are located in the States of Odisha, Chhattisgarh and Bengal. This Eastern part of India. Together they produce per year to 3.5 million tons. Primarily produces sheet products. However, also produces rod, including the alloy steel and welded pipes.
Recently it became known that the company intends to purchase several corporations. We are talking about a group of Tata Steel. Their desire was voiced by a British company Liberty Steel. However, the most attractive was the suggestion of the Indian metals group JSW Steel. For the assets of the bankrupt company it has offered creditors 196,5 billion. She received a letter of intent from Bhushan Power and Steel. Thus, she had the priority right to buy the bankrupt. Before it is considered final decision, should specify the conditions. Then the terms of the transaction must be approved in a specific instance. We are talking about a National Tribunal in corporate law.
This is not the first acquisition of the group JSW Steel bankrupt enterprise. Last year it was bought by the steel company Monnet Ispat. It is also an Indian company that went bankrupt. Per year it produces about 1 million of steel. For its assets JSW Steel forked by 28.75 billion rupees. This was done to expand its production capacity. This is necessary to achieve the goals set by the company. Thus, it will be able to beat many of its competitors.