The National Company Law Appellate Tribunal (NCLT) on Monday reportedly allowed JSW Steel to acquire of Bhushan Power & Steel (BPSL) for Rs 19,700 crore by providing it immunity from prosecution.
Shares of JSW Steel were trading 0.21% lower at Rs 288.4 on BSE.According to media reports, a two-member bench headed by chairman justice S J Mukhopadhaya, said that JSW Steel will be immune from the acts done by the former promoters of BPSL. However, it also said that prosecution against the former promoters under the money laundering act by the Enforcement Directorate can continue. It has also rejected the petitions filed by operational creditors, seeking higher claims.
The bench reportedly said that the EBITDA (earnings before interest, tax, depreciation and amortization) earned by BPSL during its Corporate Insolvency resolution period will be given to JSW Steel.
On 10 October, the Directorate of Enforcement (ED) had attached assets worth over Rs 4,025 crore of debt-ridden BPSL in connection with its money laundering probe linked to an alleged bank loan fraud by its former promoters. JSW Steel, which emerged as the successful resolution applicant with its Rs 19,700 crore bid for BPSL, filed an appeal against the ED's move before the NCLAT. The appellate tribunal had on 14 October directed the ED to immediately release the confiscated assets of BPSL in favour of the resolution professional of the debt-ridden firm.
JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA). Its consolidated net profit slumped 87% to Rs 211 crore on a 12.1% fall in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.
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