New Delhi: Billionaire Sajjan Jindal-led JSW Steel Ltd on Thursday won a bankruptcy court nod for a Rs 19,700-crore takeover of Bhushan Power & Steel Ltd, capping a two-year insolvency process initiated by lenders to recover unpaid loans.
The National Company Law Tribunal (NCLT) approved its bid, which was recommended by a committee of lenders to Bhushan Power and Steel over rival bids by Tata Steel Ltd and Liberty House Group.
According to the order of the NCLT, Rs 19,350 crore will be distributed among financial creditors to settle their Rs 47,158 crore of admitted claims. The remaining Rs 350 crore would be paid to operational creditor to settle less than half of their Rs 733.76 crore admitted claims.
Banks would get 41.03 per cent of their outstanding dues as compared a liquidation value of between Rs 9,320 crore and Rs 9,707 crore, it said.
JSW Steel will make an infusion of Rs 7,200 crore in the company for improving operations of the company.
Bhushan Steel and Power Ltd was dragged to insolvency by lenders led by PNB after the company failed to pay loans within the stipulated time-frame.
The NCLT in its 138-page order also stated that profits made by the company during the two-year insolvency period must be distributed to creditors, in accordance with a ruling by the NCLAT in a case involving ArcelorMittal-Essar Steel India Ltd.