Bhushan Power's lenders vote for closing JSW Steel deal
BusinessToday.In March 5, 2021
The lenders of bankrupt Bhushan Power and Steel Ltd (BPSL) have voted for closing the Rs 19,350-crore deal with JSW Steel.
"Lenders with 97 per cent voting share voted in favour. The effort is to complete the process by March 31," Business Standard cited sources as saying.
The lenders voted on proposal to accept JSW Steel's resolution plan and refund the amount in case of an adverse ruling by the Supreme Court. BPSL's financial creditors will get Rs 19,350 crore from JSW Steel.
The resolution amount would be parked in an escrow account managed by the Punjab National Bank. While the lenders can take the money from the account, they will have to return it if there is an adverse order by the Supreme Court.
The resolution plan of BPSL has been caught up in a legal battle. The Enforcement Directorate (ED) had moved the Supreme Court against an order by the National Company Law Appellate Tribunal (NCLAT), granting immunity to JSW Steel from prosecution for past offences committed by the then promoters of BPSL.
Earlier, ED had attached BPSL's assets worth over Rs 4,000 crore, a month after JSW Steel's resolution plan was approved by NCLT, in connection to a money laundering case.
BPSL's former promoter Sanjay Singal had also filed an application in the apex court opposing JSW Steel's resolution plan.