19 February 2019: Lenders to Bhushan Power and Steel (BPSL) will soon approach the National Company Law Tribunal (NCLT) requesting an early hearing for approving the resolution plan of its preferred bidder JSW Steel for the bankrupt company.
Though the resolution professional, Mahender Khandelwal, had on February 14 submitted to the NCLT for approval JSW Steel’s Rs 19,700-crore bid, the adjudicating authority is yet to approve the plan.
“We will be making a mention in the NCLT urging it to hear and approve the plan as soon as possible,” said a banker.
In August last year, lenders had approved JSW Steel’s plan for BPSL. However, rival contender Tata Steel moved the National Company Law Appellate Tribunal (NCLAT) alleging that lenders had given JSW Steel undue chances to revise its bid even after declaring Tata Steel as the preferred bidder.
The NCLAT, however, on February 4 rejected Tata Steel’s contention, paving the way for JSW Steel to take over BPSL.
JSW Steel has offered to pay Rs 19,350 crore to the financial creditors of BPSL, implying a nearly 60% haircut for lenders. Apart from this, the Sajjan Jindal-promoted company has offered to pay operational creditors a sum of Rs 350 crore against their admitted claims of `733 crore. Tata Steel’s total bid was of Rs 17,000 crore.
BPSL was admitted by the New Delhi bench of the NCLT on July 26, 2017 for initiation of the corporate insolvency resolution process on the plea of Punjab National Bank.
A clutch of 34 financial creditors claimed `47,303 crore from the company as on January 3, 2019. Of this, the RP has admitted claims worth Rs 47,150 crore.