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JSW Steel & BPSL CoC Negotiating Deal Terms - Report

Steel News - Published on Thu, 12 Sep 2019

Image Source: JSW
Mint reported that lenders to Bhushan Power and Steel Ltd have held talks with JSW Steel Ltd, which had won the stressed steel mill bid under the insolvency code, as the acquirer is not entirely happy with the takeover terms cleared by the bankruptcy court. Sources told Mint “BPSL’s committee of creditors met top company executives this week to arrive at the final terms of the takeover. Banks were keen to receive the upfront payment of INR 19,700 crore within 30 days of the NCLT order. He told “We’re holding meetings with the company to see what can be worked out. JSW primarily wants its assets protected from the CBI investigation, and that is something the CoC cannot offer. But we want the resolution process to close at the earliest."

Banks are trying to improve the final terms for JSW Steel, which had made two key demands including protection from the consequences of a fraud investigation into BPSL and discharging statutory liabilities, but were not entertained by the Delhi bench of the National Company Law Tribunal. JSW can challenge the NCLT decision in higher courts, but that would delay the resolution process further.

JSW had sought protection after a forensic audit revealed potential fraud and diversion of money by its erstwhile promoters. The allegations are being investigated by the Central Bureau of Investigation.

The NCLT also ruled that the operating profits that BPSL earned during its two-year-long resolution period be distributed among the company’s financial and operational creditors. JSW believes, instead, that these profits were part of the company’s assets and should stay with BPSL.


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Posted By : Amom Remju on Thu, 12 Sep 2019
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