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Lenders Give 2 Weeks to JSW Steel to pay for Bhushan Power & Steel

Steel News - Published on Fri, 26 Jun 2020

Image Source: JSW Steel BPSL
Financial Express reported that lenders to Bhushan Power and Steel have intimated to JSW Steel that they would take appropriate steps if it does not implement the resolution plan for BPSL in two weeks, among them the invoking of guarantees. Persons close to the development told FE that a letter dated June 20 was sent to JSW Steel as the company is yet to pay the iNr 19,350 crore, as per the court-approved resolution plan. The letter reads: “If the resolution plan is not implemented within 2 weeks of this letter we shall take steps, including but not limited to Section 74 of insolvency & bankruptcy code.”

The letter said: “We have been assured by you time and again in various meetings that the debt financing for the implementation of the resolution plan is close to completion; however, even at this late stage, we note that no binding executed loan documents have been provided to us which would evidence such debt financing, and now we believe that no such debt financing agreements have actually been signed as of date, and therefore JSW has not completed the funding agreements for implementation of the resolution plan, and is not in a situation to draw down funds.”

Responding to an email sent by FE, JSW Steel official said “The matter is subjudice before the SC as all the parties in the last hearing were asked to file their submissions within two weeks in response to application filed by JSW Steel. Pending adjudication of appeals and CoC application before SC, the plan is incapable of implementation more so when the assets of BPSL are continued to be attached by enforcement directorate.”

JSW Steel had earlier missed the deadline of March 17 to make the payment of INR 19,350 crore as per approval from National Company Law Appellate Tribunal.

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Posted By : Yogender Pancholi on Fri, 26 Jun 2020
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