JSW Steel has received National Company Law Tribunal’s (NCLT) nod for a Rs 19,700 crore takeover of Bhushan Power & Steel, capping a two-year insolvency process initiated by lenders to recover unpaid loans. The NCLT approved its bid, which was recommended by a committee of lenders to Bhushan Power and Steel over rival bids by Tata Steel 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 percent of their outstanding dues as compared a liquidation value of between Rs 9,320 crore and Rs 9,707 crore. JSW Steel will make an infusion of Rs 7,200 crore in the company for improving operations of the company.
JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.