Financial Express reported that Bhushan Power and Steel Limited’s highest bidder JSW Steel has informed the National Company Law Appellate Tribunal that it would be impossible for it to implement the resolution plan for BPSL if it has to share profits earned by the insolvent firm during the resolution period with creditors. JSW has also expressed concerns over the chances of BPSL’s assets being undermined given it doesn’t have tribunal’ protection against possible attachment of assets for offence committed by the erstwhile promoters.
Challenging NCLT’s September 5 order that approved its INR 19,700-crore bid for the insolvent firm, JSW said “The direction in relation to treatment of CIRP EBITDA amounts to modifying the resolution plan in a material manner, without the consent of the appellant and imposition of such a condition would make it impossible for the appellant to implement the resolution plan.”
In its order, NCLT had directed JSW Steel to distribute profits earned during the Corporate Insolvency Resolution Process period among financial and operational creditors on pro-rata basis.
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