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KOLKATA/NEW DELHI: The appellate bankruptcy court has directed the National Company Law Tribunal (NCLT) to pronounce an order in the Bhushan Power Steel insolvency case by March 31.
The National Company Law Appellate Tribunal (NCLAT) issued the order on Friday, responding to an appeal by the company’s creditors who expressed concern over a delay in the insolvency process.
Almost 1,800 operational creditors have approached the NCLT with their grievances.
JSW Steel, which has offered an upfront payment of Rs 19,300 crore to the lenders of Bhushan Power Steel, has the overall approval of over 90 per cent of the committee of creditors.
JSW’s offer includes another Rs 350 crore earmarked for operational creditors.
Following the CoC’s nod, the resolution professional had issued a letter of intent to JSW Steel on February 12.
JSW’s resolution plan remains to be approved by the NCLT.
The resolution process has been delayed on account of the appeals of operational creditors and a surprise last-minute bid by Bhushan Power Steel’s promoter Sanjay Singal, who has offered a settlement to the lenders to clear their dues.
Singal has filed the settlement offer and demanded that the NCLT hear his plea.
