JSW Steel gets LoI to buy Bhushan Power and Steel

2019-02-01

Feb. 1, 2019 - JSW Steel has received a Letter of Intent late on Tuesday from the Insolvency Resolution Professional of Bhushan Power and Steel, declaring it the highest bidder for the stressed asset. It is reported JSW Steel has to review the approved resolution plan sent along with the letter before accepting the offer. The development takes JSW Steel closer to acquiring Bhushan Power, provided there is no arbitrary insertion of clauses by the IRP or the stressed company’s Committee of Creditors. Once JSW Steel accepts the LoI, the IRP, in consultation with the CoC, will place the resolution plan before the NCLT for final approval. The entire process is expected to be completed by the first week of April.”

Last week, the NCLAT had upheld JSW Steel’s bid and turned down Tata Steel’s objections to the selection process. While directing the IRP to send the JSW Steel bid for approval, the appellate authority had said the NCLT should ensure that there is no discrimination between financial and operational creditors.

The case has been in the insolvency courts for the past eight months.