NCLT approves JSW Steel's offer of 19.7 billion rupees for Bhushan Power u0026 Steel
NEW DELHI: The National Court of Company Law (NCLT) on Thursday approved the JSW Steel resolution plan of Rs.7.7 billion for Bhushan Power u0026 Steel Ltd (BPSL).
A leading NCLT two-member bank headed by President Justice M M Kumar also said that criminal cases against BPSL promoters for diverting company funds will not affect JSW Steel as its new promoter.
The court has also said that the profits obtained by BPSL during the insolvency period will be distributed among the creditors of Bhushan Power, in accordance with the decision of the Court of Appeal of the Law of National Societies (NCLAT) in the ArcelorMittal case.
The NCLT also rejected the objections raised by Tata Steel on the offers presented by JSW and its former promoters.
In April, the NCLT had reserved its trial after concluding the hearing of the parties.
Tata Steel had objected the improved financial offer of JSW Steel before the resolution professional and the Committee of Creditors' of Bhushan Power and Steel .
The court had initiated the corporate insolvency resolution (CIRP) process against BPSL on July 26, 2017, admitting the appeal of its main lender Punjab National Bank (PNB).