Seeking to ensure maximum participation in the bidding for stressed assets under the insolvency law, the creditors’ committees for Bhushan Power & Steel and Electrosteel Steels have extended the deadline for submitting the expression of interest (EOI).
Electrosteel has advertised in newspapers that on the instructions of the committee of creditors, the resolution professional is inviting applicants, including people who might not have submitted EOIs before but satisfy the minimum eligibility criteria, to submit resolution plans for the company byDecember 11. Applicants would also have to submit EOIs before the submission of resolution plans.
The original date for submitting EOIs for Electrosteel was September 27. Those who had submitted EOIs by that date were: Srei Infrastructure Finance, Tata Steel, Mesco Steel, Edelweiss, Avalokiteshvar Valinv Ltd, and existing promoter, Electrosteel Castings. However, the latest amendments to the Insolvency and Bankruptcy Code (IBC) have barred the promoters from reacquiring their assets unless overdues are paid with interest before the submission of a resolution plan.
Sources said that for Bhushan Power, the credit committee had decided to allow prospective bidders to submit their resolution plans till the 150th day, which, for the company, would be December 23. The IBC rules provide for a period of 180 days for resolution with a 90-day extension.
Industry sources said the committee of creditors would want maximum participation of bidders for better recovery of assets.