Official! JSW Steel is Bhushan Power & Steel’s new promoter

New Delhi: The National Company Law Tribunal (NCLT) gave a nod to JSW Steel’s resolution plan for debt-ridden Bhushan Power & Steel Ltd (BPSL) on Thursday. The deal is valued at Rs 19,700 crores. The NCLT bench also clarified that criminal cases against BPSL promoters will not impact the new promoter — JSW Steel.

BPSL profit will be distributed between creditors

The two-member NCLT bench also said that the profits made by BPSL during the insolvency period will be distributed between the creditors of Bhushan Power, in line with the NCLAT ruling in the ArcelorMittal case.

The bench also rejected the objections raised by Tata Steel pertaining to the bids submitted by JSW Steel and its former promoters.

The NCLT had initiated a corporate insolvency resolution process (CIRP) against BPSL on July 26, 2017, on the basis of a plea filed by its lead lender Punjab National Bank (PNB).