JSW Steel on Friday said it has paid Rs 19,350 crore to the financial creditors of Bhushan Power & Steel Ltd towards implementation of the resolution plan for acquiring the company.
Throwback
Bhushan Power was one of the first list of a dozen defaulters identified by RBI to be sent to NCLT for resolution. The NCLT had cleared JSW Steel’s resolution plan for BPSL in September 2019.
Creditors of Bhushan Power
SBI is the largest lender to Bhushan Power and stands to recover over Rs 4000 crore.
SBI had admitted claims of Rs 9825 crore against the company, Punjab National Bank Rs 7,355 crore (including claims of OBC, and United Bank of India which were merged into PNB), Canara Bank Rs 3,991 crore (including claims from Syndicate Bank which is merged into Canara Bank), Union Bank of India Rs 3,497 crore (including merger banks Andhra & Corporation), Indian Bank Rs 3,083 crore (including from ex Allahabad Bank), Bank of Baroda Rs 2,606 crore and so on.
Acquisition Funding details
The transaction was funded through a mix of equity and debt. As part of the payment, a sum of Rs 8,614 crore in Piombino Steel (PSL) was arranged through a mix of equity, optionally convertible instruments and debt.
Out of this, Rs 8,550 crore was invested in a special purpose vehicle (SPV), Makler, the bidding company. The remaining Rs 10,800 crore was funded through debt.
Tweet from Chairman
Sajjan Jindal, “Very proud that with the acquisition of Bhushan Power and Steel Ltd., we have made our entry in Odisha-East India and are now the country’s leading Steel Maker.
On behalf of all @TheJSWGroup I am happy to welcome the employees of #BPSL to the JSW Family!.”
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