Bhushan Power & Electrosteel get 90-day extension

Bhushan Power & Steel and Electrosteel Steels have got 90-day extension by the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC).

For Bhushan Power & Steel, the deadline for submission of resolution plan was January 10 and the committee of creditors is likely to take up the extension of deadline shortly. Mahender Kumar Khandelwal, the insolvency professional for Bhushan Power, and leader and partner of business restructuring at BDO India LLP, declined to comment.

Among those interested in Bhushan Power & Steel are JSW Steel, Tata Steel, Vedanta, an investor from UAE, ArcelorMittal and Liberty House.

Electrosteel Steels also informed the stock exchanges that it had been granted an extension of 90 days on the basis of the resolution passed by the committee of creditors and an application filed by the resolution professional. The deadline for submitting resolution plans has accordingly been shifted from December 26 to January 4. Among those who have evinced interest are Srei Infrastructure Finance, Tata Steel, Mesco Steel, Edelweiss, Renaissance Steel India and Vedanta.

According to the IBC rules, application for approved resolution plan has to be filed with the NCLT within 180 days, which can be extended by another 90 days. Electrosteel’s debt in FY17 stood at Rs 10,288.2 crore. It is one of the 12 non-performing asset accounts identified by the central bank for resolution in June. Bhushan Power, on the other hand, has a debt of Rs 37,248 crore.