6 April 2019: As the old saying goes, justice delayed is justice denied. A resolution plan for insolvent firms is generally to be found with 270 days, in line with the requirements of Insolvency and Bankruptcy Code.
However, now more than 600 days on, there seems to be no end in sight for the debt-laden Bhushan Power and Steel (BPSL) even as the National Company Law Appellate Tribunal had directed the Delhi bench of National Company Law Tribunal to decide on JSW Steel’s bid by March 31.
JSW Steel came from behind and bettered its initial bid to trump Tata Steel’s Rs 17,000 crore offer. The Sajjan Jindal-led company offered to pay Rs 19,650 crore, which included upfront payment of Rs 19,300 crore and an equity infusion of Rs 350 crore for operational creditors.
In early February, JSW Steel received a Letter of Intent from the resolution professional, recommending the sale of BPSL to the steel major. The transaction is awaiting the approval of the NCLT, while sources say “there are some six to seven hearings pending, post which the tribunal may close the deal by April-end in favour of JSW Steel.”
In a separate development, JSW Steel informed the BSE on Friday that the steelmaker intends to enter the dollar bond market with a benchmark issue to raise up to $500 million in debt.