NCLAT stays sale of Bhushan Power to Sajjan Jindal’s JSW Steel
15/10/2019
new delhi: Mumbai: A National Company Law Appellate Tribunal (NCLAT) bench on Monday stayed the sale of stressed steel maker Bhushan Power and Steel Ltd (BPSL) through the insolvency and bankruptcy process to Sajjan Jindal's JSW Steel.
The NCLAT also asked the Enforcement Directorate to release the assets of Bhushan Power worth around Rs.4,025 crore, which the government agency had attached in a case relating to bank fraud, on Saturday, reported Bloomberg.
JSW Steel had in September moved NCLAT seeking immunity from criminal proceedings in the ongoing bank fraud investigation against erstwhile promoter of BPSL.
ED on Saturday attached assets worth Rs.4,025 crore of BPSL in connection with an alleged bank loan fraud, which is being investigated under the Prevention of Money Laundering Act (PMLA), 2002.
JSW Steel had in September acquired debt-ridden BPSL under the Insolvency and Bankruptcy Code (IBC) with an offer of Rs.19,700 crore. While financial creditors will recover Rs.19,350 crore, or 41% of their total admitted claims of Rs.47,158 crore. Operational creditors will get Rs.350 crore of their admitted claims of Rs.734 crore.
On Saturday, JSW Steel Ltd said the probe agency's action vindicated its stand to seek immunity from criminal proceedings in the ongoing probe.
"It vindicates JSW Steel stand of seeking immunity from attachment of properties of corporate debtor (BPSL). This may happen even in cases where the control is changed under IBC," the company's joint managing director and group chief financial officer Seshagiri Rao said in a statement.
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