Economic & Industrial

JSW Steel Marches Ahead to Acquire BPSL on Receiving Maximum Votes from Lenders

JSW Steel Marches Ahead to Acquire BPSL on Receiving Maximum Votes from Lenders
Mining News Pro - Creditors of BPSL (Bhushan Power & Steel Ltd) have chosen JSW Steel Ltd. as the preferred bidder to buy BPSL by giving 66.6% vote in its favour.
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According to Mining News Pro -Creditors of BPSL (Bhushan Power & Steel Ltd) have chosen JSW Steel Ltd. as the preferred bidder to buy BPSL by giving 66.6% vote in its favour.


According to the market sources, a majority of Bhushan Power’s lenders have selected the JSW proposal as the best offer. In Aug’18, JSW Steel has revised its offer and increased it from INR 11,000 crore to INR 19,700 crore leaving behind Tata Steel and Liberty House.


Tata Steel has offered INR 17,000 crore whereas Liberty House’s offer was higher at INR 18,500 crore for the bankrupt BPSL.


Now since JSW Steel’s bid got the bare minimum number of votes, the National Company Law Tribunal (NCLT) will have to approve the resolution plan under the regulations of the Insolvency and Bankruptcy Code.


The bidders were directed by the NCLAT to improve their offer, provided basic parameters of the “resolution plans” already submitted by them were unchanged. A source close to the development said that the bidders who lost the race are likely to challenge the CoC decision in courts.


The stressed asset BPSL with a production capacity of 3.1 MnT was among the 12 accounts recommended by RBI’s (Reserve Bank of India) internal advisory committee for resolution under the Insolvency and Bankruptcy Code (IBC) in June last year. The company has total debt of INR 47,000 crores.


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