Bhushan Power And Steel’s Lenders Seek NCLAT Order To JSW Steel To Execute Resolution Plan Without Any Delay

Bhushan Power and Steel’s (BPSL) Committee of Creditors (CoC) have urged the National Company Law Appellate Tribunal (NCLAT) to direct JSW Steel, which is the bankrupt firm’s highest bidder to implement the corporate insolvency resolution plan (CIRP) without further delay.

Incidentally, JSW Steel had offered to pay Rs 19,350 crore to its financial creditors and Rs 350 crore to its operational creditors in its bid which was approved by the National Company Law Tribunal (NCLT) on September 5.

JSW Steel is being investigated for alleged siphoning of thousands of crores of funds borrowed from banks on behalf of BPSL.

It may be recalled that banks and financial institutions also want JSW Steel to pay a minimum 8.25% interest on their Rs 19,350 crore dues from October 4 until the plan is implemented. They had also claimed their share of the profits earned by BPSL during the CIRP period.

However, lenders have urged the NCLAT to heed JSW Steel’s prayer for protection against attachment or confiscation of assets of BPSL under the Prevention of Money Laundering Act (PMLA).

On September 13, JSW Steel had filed an application with the NCLAT seeking protection of the insolvent firm’s assets, after takeover.

JSW Steel wanted that the assets should not be attached by the investigating agencies. It also did not want profits earned by BPSL during the corporate insolvency resolution process to be distributed to lenders.

On September 16, the NCLAT had issued notices to lenders and declined to pass any order on JSW Steel’s application to stay the implementation of BPSL’s resolution plan for BPSL.