Most of debt-laden Bhushan Power and Steel Ltd.'s creditors selected JSW Steel Ltd. as the preferred bidder for its sale, Bloomberg reported Oct. 17, citing people familiar with the matter.
The company has a steelmaking capacity of 3.5 million tonnes per annum, according to its website.
JSW bid about 196 billion Indian rupees, or about US$2.7 billion, beating rival bids from Tata Steel Ltd. and Liberty House Group.
The resolution plan JSW Steel submitted needs consent from Indian courts for the deal to be completed, and the bidding is also facing legal challenges. Claims against Bhushan Power and Steel in India's bankruptcy total about 485 billion rupees, according to the report.
As of Oct. 16, US$1 was equivalent to 73.30 Indian rupees.