Indian court approves JSW Steel's takeover of Bhushan Power and Steel
2019-09-06 15:11:35 [Print]
On September 5, the National Company Law Tribunal (NCLT) in New Delhi cleared JSW Steel Ltd.'s takeover plan for debt-ridden Bhushan Power and Steel, bringing an end to a bankruptcy case that has dragged on over two years.
The move paves the way for JSW Steel, which has the biggest steel capacity in India, to take control of a steel asset in the east of the country where rival Tata Steel and Steel Authority of India Ltd. have long dominated.
India's Punjab National Bank initiated criminal proceedings against the former board of directors of Bhushan Power after the bank discovered a 38 billion rupees ($529 million) fraud here in the account of the company. The NCLT said investigations and any subsequent criminal proceedings would not affect the resolution plan of JSW Steel, which had asked for immunity from the fraud case. JSW Steel spokesman said the company was reviewing the judgement and would make an announcement on September 6.
Bhushan Power and Steel runs a 3.5 million tonne steel plant in eastern India along with a 500 megawatt power plant for internal use.
The move paves the way for JSW Steel, which has the biggest steel capacity in India, to take control of a steel asset in the east of the country where rival Tata Steel and Steel Authority of India Ltd. have long dominated.
India's Punjab National Bank initiated criminal proceedings against the former board of directors of Bhushan Power after the bank discovered a 38 billion rupees ($529 million) fraud here in the account of the company. The NCLT said investigations and any subsequent criminal proceedings would not affect the resolution plan of JSW Steel, which had asked for immunity from the fraud case. JSW Steel spokesman said the company was reviewing the judgement and would make an announcement on September 6.
Bhushan Power and Steel runs a 3.5 million tonne steel plant in eastern India along with a 500 megawatt power plant for internal use.
