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Informist, Wednesday, May 7, 2025

--PNB MD: To meet Bhushan Power lenders in 2-3 days to discuss further steps 

NEW DELHI/MUMBAI – Punjab National Bank plans to meet the committee of creditors of Bhushan Power & Steel Ltd. in two to three days to finalise the next course of action after the Supreme Court set aside the resolution plan for the debt-ridden steel company, the bank's Managing Director and Chief Executive Officer Ashok Chandra said Wednesday. "We (committee of creditors) will have to form a consensus and discuss the next course of action. It will be clear in the next four to five days," Chandra said at a post-earnings press briefing.

"Any decision we (committee of creditors) take will be compliant with the Supreme Court's rules," Chandra said.

The committee of creditors for Bhushan Power & Steel is led by the State Bank of India and Punjab National Bank. The Supreme Court had on Friday set aside JSW Steel Ltd.'s resolution plan for Bhushan Steel & Power, saying it was illegal and should not have been accepted by the committee of creditors.

Some media reports said the committee of creditors is planning to file a review petition in the case, but Chandra said no decision has been taken yet. 
 

The Supreme Court said the committee of creditors had failed to exercise commercial wisdom by approving the resolution plan of JSW Steel, which was in contravention of the mandatory provisions of the Insolvency and Bankruptcy Code. The committee of creditors also failed to protect the interest of creditors by taking a contradictory stand before the court and accepting the payment from JSW Steel, the court said. 

Chandra said the bank received around INR 30 billion when JSW Steel took over Bhushan Power & Steel. With the Supreme Court reversing the transaction, banks and operational creditors will have to return the amount they had received and liquidate Bhushan Power. 

Wednesday, shares of Punjab National Bank ended 0.2% lower at INR 94.25 on the National Stock Exchange. End

Reported by Priyasmita Dutta and Sachi Pandey

Edited by Saji George Titus

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