Supreme Court reserves verdict in Bhushan Power insolvency case
Bhushan Power and Steel Ltd (BPSL) The rehearsal of the bankruptcy case resulted on Monday, and the Supreme Court’s special bench JSW Steel Ltd’s reserved his decision on challenges. La19,700 Crore resolution plan.
Council of Justice BR Gavai, Justice K. Vinod Chandran and Justice Satish Chandra Sharma, the Council of the Court of Cassation of JSW Steel’s bankruptcy and bankruptcy law (IBC) claim that the decision to break the plan again heard the issue again.
This previous decision sent shock waves through the IBC framework by ordering to return to banks. La19,350 crore paid by JSW Steel and almost La34,000 CRORE Total bank exposure is at risk.
This upcoming decision is seen as JSW Steel’s last opportunity to protect BPSL.
The lenders, led by the National Bank of Punjab, supported JSW Steel’s plan, said the Supreme Court, including the understanding that JSW Steel will share some of its business revenues, said that their support is based on certain conditions.
Layers are looking for La6,155 Crore. This includes LaInterest, taxes, depreciation and pre -depreciation earnings recorded during the Corporate Bankruptcy Solution Process (CIRP) from July 2017 to March 2021, La2,509.88 Crore interest rate for 538 days of payments to financial creditors and La76,62 attracts the attention of operational creditors.
They claimed that the long -term implementation of the decision plan deprived of return banks that could significantly reduce their losses.
“Interest and favök – these two things should come. There must be justice for creditors because we are banks. We are interested in public money,” the loans said General Tushar Mehta.
Jsw Steel what did he say
JSW Steel argued that the solution plan does not require EBITDA sharing and the decision plan cannot be distributed unless the plan itself or in accordance with the laws cannot be distributed – a position that the Creditors’ committee has previously accepted.
The Company was JSW Steel, not the creditors, not the creditors during the CIRP.
JSW Steel, the claim of the claim La6,000 Crore would rewrite the conditions, determine a dangerous precedent and invite future disagreements.
Senior Attorney Neeraj Kaul, who represented JSW Steel, claimed that the company has purchased a loss of a loss and continued to implement the decision plan, although it was postponed by the Executive Director of the Process (ED).
On behalf of JSW Steel, Kaul said, “The decision was still a clear loss even after the decision of the decision professional (RP) started to run until 2021. The loss decreased after taking over the RP, but it was still clear. I take over a missing company”.
What did the creditors claim
Former BPSL supporter Sanjay Singal and other opposition creditors JSW Steel’s plan to scrape the court, new offers should be invited instead of liquidation, he said.
They accused Jsw Steel of deviating of commitments only by vaccinating. La100 crore in a promised working capital La8,000 CRORE only pays LaDelay of payments of 540 crore and operational creditors to financial creditors more than 900 days.
The creditor also claimed to abuse and agree with the former creditors and decision professionals committee.
Petitions against JSW Steel’s solution plan, Kalyani Group’s opponents of financial creditors, including Torsteel, Odisha province and former stakeholders – were claimed to be delays and irregularities in the implementation of this decision plan.
Background
On July 31, the Supreme Court reminded the decision of the 2nd May 2, which led the decision plan aside and directed the liquidation in accordance with Article 142 of the Constitution, by Bela M. Trivedi and Satish Chandra Sharma.
It was based on concerns about the recall, the incorrect implementation of IBC principles, relying on factual mistakes and taking into account arguments that did not occur during the original hearings.
BPSL’s bankruptcy process began in July 2017 after petitions on unpaid dues by Punjap National Bank and other lenders. La47,000 crore. BPSL was between 12 major defaults defined by the Indian Reserve Bank for a decision within the scope of IBC.
JSW Steel, La19,000 Crore defeated Tata Steel as a successful bid for BPSL. The plan was approved by the BPSL’s Creditors Committee in October 2018, in 2019 by the National Company Legal Court and the National Company Law Court in 2020.
However, many challenges, including opposition creditors and former supporters, delayed the implementation of JSW Steel’s solution plan by March 2021.
Since the acquisition, JSW Steel said that BPSL has doubled its production capacity to 4.5 mtpa in 2017 from 2.3 million tons to 2025 per year.
