Bhushan Power sale to JSW Steel halted in test for bankruptcy law
Mumbai: A bankruptcy appeals court on Monday halted the transfer of Bhushan Power and Steel Ltd (BPSL) to JSW Steel Ltd and stayed the Enforcement Directorate’s (ED) move to attach assets of the insolvent steel maker, scuttling hopes of a swift resolution of the distressed asset.
The National Company Law Appellate Tribunal (NCLAT) stayed the transfer of the payment by JSW Steel to the creditors of BPSL till investigation into allegations of fraud and money laundering by the former owners of the steel mill is decided. NCLAT will issue final orders on 25 October.
The tribunal’s ruling could have far-reaching implications, especially for BPSL’s lenders, as the resolution process has lingered on for more than two years.
