13 April 2019: The National Company Law Tribunal (NCLT) will conclude hearing on Bhushan Power and Steel (BPSL) insolvency case by April 15. Insolvency resolution process for the company was admitted by the principal bench of the NCLT on July 26, 2017 on a plea of Punjab National Bank.
“We want to conclude hearing on the BPSL matter on Monday. There will be no further argument beyond Monday,” NCLT’s principal bench, headed by president justice MM Kumar, said on Friday.
The tribunal is expected to reserve its order on April 15 after hearing the counsel of JSW Steel, the highest bidder for BPSL, and is expected to ask all parties to submit a two-page note if they want to provide any further information. It has been more than 600 days since BPSL was admitted by the NCLT. The Insolvency and Bankruptcy Code permits a maximum of 270 days for the resolution of a company admitted by the insolvency court.
JSW Steel has offered to pay Rs 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 Rs 350 crore against their admitted claims of Rs 733 crore. Tata Steel’s total bid is for an amount of Rs 17,000 crore.
A clutch of 34 financial creditors have claimed Rs 47,303 crore from the company as on January 3, 2019, of which, the resolution professional (RP) has admitted claims worth Rs 47,150 crore. Operational creditors, numbering 1,778, have claimed Rs 2,320 crore from BPSL though the admitted amount is Rs 733 crore.
BPSL’s 3.1 million tonne per annum (mtpa) steel making capacity will catapult JSW Steel as India’s largest steel company, outpacing Tata Steel, with a capacity of over 22 mtpa.