May prefer fresh insolvency process, say Bhushan Power & Steel lenders

The tribunal was hearing a plea filed by BPSL's former promoter Sanjay Singhal, seeking enforcement of the Supreme Court's recent order directing the company's liquidation

Lenders of Bhushan Power & Steel (BPSL) on Tuesday indicated before the National Company Law Tribunal (NCLT) Delhi that they may prefer a fresh insolvency process for the company rather than sending it for liquidation.

 

"Every option is under consideration because this will have to be clarified by the honourable court... We may even persuade the court to initiate a fresh CIRP (Corporate Insolvency Resolution Process) because the ultimate object of the IBC (Insolvency and Bankruptcy Code) is to preserve the company as a going concern. Liquidation is the ultimate death,” Solicitor General Tushar Mehta, appearing for the lenders and