4 February 2019: The National Company Law Appellate Tribunal ruled that JSW Steel Ltd.’s revised offer for Bhushan Power & Steel Ltd. is valid under the Insolvency & Bankruptcy Code.
The appellate tribunal was hearing a petition filed against the revised offer by Tata Steel Ltd., the highest bidder for the asset in the first round of bidding. In its revised offer, JSW Steel had bid Rs 19,300 crore for Bhushan Power compared with Rs 19,000 crore offered by Liberty House UK. Tata Steel’s bid is close to Rs 17,000 crore, people in the know said.
Bhushan Power, part of the first 12 large corporate accounts shortlisted by the Reserve Bank of India for insolvency proceedings in June 2017, owes lenders more than Rs 47,000 crore and operational creditors over Rs 700 crore. Punjab National Bank had filed for insolvency proceedings but case has seen considerable delays.
The NCLAT bench headed by SJ Mukhopadhya had reserved the judgment on Dec. after hearing all the parties. The appellate tribunal had ordered all the three bidders to submit revised bids with improved financial offers.
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