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The National Company Law Tribunal (NCLT) today approved JSW Steel Ltd.’s $2.7 billion bid for Bhushan Power & Steel Ltd., the second major steel asset the mill has bagged under the nation’s new insolvency process.
The NCLT approved the offer while stating that profits made by Bhushan Power during the insolvency period must be distributed to creditors, in accordance with a ruling by a higher tribunal in a case involving ArcelorMittal-Essar Steel India Ltd.
Bhushan Power will add 3.5 million tons a year of capacity to the Sajjan Jindal-led mill’s operations and establish the Mumbai-based company’s footprint in the eastern part of the country. JSW bid about Rs.19,700 crore, higher than rivals Tata Steel Ltd. and Liberty House Group.
JSW wasn’t dissuaded in its pursuit of Bhushan Power by a string of accounting frauds, including those totaling about Rs.5,600 crore reported by Allahabad Bank Ltd. and Punjab National Bank. The sale won’t be affected by criminal proceedings against the former founders of Bhushan Power on the alleged siphoning off of funds, the court said Thursday. The court also appointed a monitoring panel to oversee implementation of JSW’s resolution plan. #casansaar (Source - PTI, LiveMint)
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