JSW Steel has formally requested a ₹19,300 crore refund from banks [1] following the Supreme Court’s decision to cancel its 2019 acquisition of Bhushan Power and Steel Ltd. (BPSL). The ruling, issued earlier this month, cited multiple compliance failures and directed the liquidation of BPSL.
JSW Steel has also sought a 60-day delay in the liquidation process, arguing that it needs time to explore legal options. The company is expected to file a review petition challenging the Supreme Court’s verdict. The National Company Law Tribunal (NCLT) will oversee the liquidation, while the Committee of Creditors (CoC) will appoint a liquidator and monitor proceedings.
At the time of its insolvency admission, BPSL had outstanding liabilities exceeding ₹45,000 crore. JSW Steel had submitted the highest bid during the resolution process, which was initially approved by the NCLT in September 2019 and later upheld by the National Company Law Appellate Tribunal (NCLAT) in February 2020. However, the Supreme Court’s latest ruling has reversed the acquisition, ordering JSW Steel to return control of BPSL to financial creditors.
JSW Steel has remained silent on the matter, while Punjab National Bank, the lead member of BPSL’s CoC, has not responded to inquiries. The Supreme Court’s decision has raised concerns about the future of BPSL and the broader implications for corporate insolvency resolution in India.
Sources:
[1] Bhushan Steel assets: ED back in play with Supreme Court scrapping JSW Steel’s resolution plan https://www.livemint.com/companies/jsw-steel-resolution-plan-bhushan-steel-insolvency-enforcement-directorate-ed-money-laundering-act-11747815692299.html