NCLT approves JSW Steel’s Rs. 19,700 crore offer for Bhushan Power & Steel
By : Legal Era
Update: 2019-09-06 09:47 GMT
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The National Company Law Tribunal (NCLT) approved JSW Steel’s Rs. 19,700 crore resolution plan for debt-ridden Bhushan Power & Steel Ltd (BPSL).A two-member principal bench of the NCLT headed by President Justice M M Kumar said the criminal cases against the promoters of BPSL for siphoning of the funds from the company will not impact JSW Steel as its new promoter.The NCLT rejected...
The National Company Law Tribunal (NCLT) approved JSW Steel’s Rs. 19,700 crore resolution plan for debt-ridden Bhushan Power & Steel Ltd (BPSL).
A two-member principal bench of the NCLT headed by President Justice M M Kumar said the criminal cases against the promoters of BPSL for siphoning of the funds from the company will not impact JSW Steel as its new promoter.
The NCLT rejected the objections raised by Tata Steel over the bids submitted by JSW and its erstwhile promoters. Tata Steel had objected the improved financial offer of JSW Steel before the Resolution Professional and the Committee of Creditors' of Bhushan Power and Steel.
The tribunal held that the profits made by BPSL during insolvency period will be distributed between creditors of Bhushan Power, in accordance with the ruling by the National Company Law Appellate Tribunal (NCLAT) in the ArcelorMittal case.
Punjab National Bank (PNB) and Allahabad Bank had filed fraud cases against Bhushan Power which was earlier owned by Sanjay Singal.
The tribunal had initiated corporate insolvency resolution process (CIRP) against BPSL on July 26, 2017, admitting the plea of its lead lender Punjab National Bank.