Bhushan Power lenders accept conditions of JSW Steel

New Delhi, March 5 In a breakthrough in one of the country's most high profile and delayed insolvency cases, majority of the lenders of the bankrupt Bhushan Power and Steel have accepted the condition of the JSW Steel that if the Supreme Court rules against the takeover, the lenders would return the money to the company.

Sources told that voting is underway currently and over 66 per cent votes, have already been casted in favour of accepting JSW's condition. It is likely to cross the 90 per cent mark by the end of the voting process, they said.

The Committee of Creditors led by Punjab National Bank is also willing to consider the arrangement of escrow account to close the deal at the earliest, said people in the know.

The development comes a week after JSW Steel wrote to the creditors, proposing to deposit the entire amount due to financial creditors as part of its resolution plan in an escrow account, which would be released subject to the conditions of the steel major.

As per its proposal, Sajjan Jindal-led JSW Steel would ensure the deal closes by March-end.

JSW Steel's Rs 19,700 crore bid to acquire BPSL hit a stalemate as the ED had moved the top court earlier against the National Company Law Appellate Tribunal (NCLAT) order to lift the attachment order against BPSL's properties.

The ED has argued that the appellate tribunal has no jurisdiction to unfreeze and approve the sale of an asset attached by the investigating agency.

The NCLAT approved the JSW Steel's resolution plan in February last year. The ED has so far attached assets worth over Rs 4,000 crore of BPSL in connection with its money laundering probe linked to an alleged bank loan fraud by the company's former promoters.

( With inputs from IANS )