20 March 2019: Operational creditors (OCs) to Bhushan Power and Steel (BPSL) on Tuesday raised objections over the committee of creditors (CoC)-approved plan before the National Company Law Tribunal (NCLT), terming it as “discriminatory”. The CoC had in August last year approved JSW Steel’s `19,700-crore plan for BPSL.
Counsel appearing on behalf of the OCs before the principal bench of the adjudicating authority also alleged that they were never given a copy of the resolution plan. The counsel also raised objection to the distinction made among the OCs.
The NCLT bench, headed by its president Justice MM Kumar, has scheduled the matter for further hearing on March 25.
The NCLT has been hearing the matter for approval of JSW Steel’s plan on a daily basis. It has been directed by the National Company Law Appellate Tribunal (NCLAT) to decide on JSW Steel’s bid for the company by March 31.
In the next scheduled hearing, the NCLT is expected to complete hearing the OCs and may also start hearing objections raised by BPSL’s erstwhile promoters.
JSW Steel has offered to pay `19,350 crore to the financial creditors of the debt-ridden BPSL implying a near 60% haircut for lenders. Apart from this, the Sajan-Jindal promoted company has offered to pay operational creditors a sum of `350 crore against their admitted claims of `733 crore.
BPSL was admitted by the New Delhi bench of the NCLT on July 26, 2017 for the initiation of the corporate insolvency resolution process (CIRP), on the plea of Punjab National Bank.
A clutch of 34 financial creditors have claimed `47,303 crore from the company, as on January 3, 2019, of which, the RP has admitted claims worth `47,150 crore.
Operational creditors, totalling 1,778, have claimed `2,320 crore from Bhushan Power and Steel though the admitted amount is `733 crore.