Bhushan Steel plans to sell, lease back oxygen plants in Odisha, India

28 February 2015

Bhushan Steel Ltd has entered into sale & lease back arrangements of its oxygen plants situated at its steel division, at Meramandali in Odisha.

In a notice to the BSE on Friday, the company said it had entered into the arrangement "in order to ease out constantly facing stress in cash flow."

It did not give any details about the financial details involved in the arrangement.The company has three oxygen plants at its steel unit in Odisha.

The shares of the company closed at Rs 87.20 on the BSE on Friday, down 1.4% on day when the benchmark Sensex rose 1.65% to close at 29,220.12 points.

Bhushan Steel has been under pressure from its lenders to cut down its debt burden. About 51 banks have an exposure of around Rs 40,000 crore in the company.

Bhushan Steel reported a net loss of Rs 454 crore in the three months ended December 31, 2014 against a net loss of Rs 54.79 crore in the corresponding period last year.