Days after the Supreme Court ordered liquidation of Bhushan Power and Steel by rejecting the JSW’s resolution plan, a Business Standard report on Monday said that many national and international players are keen on the company’s assets.
The report stated that while the renewed auction may take some time, top steelmakers may rebid for Bhushan Power and Steel. A major acquisition under the Insolvency and Bankruptcy Code, Bhushan Power and Steel was bought by JSW Steel. Under the new leadership, Bhushan Power and Steel went on to almost double its operation capacity to 4.5 million tonnes from 2.75 million tonnes.
The Business Standard report further said that Naveen Jindal’s Jindal Steel and Power may also make an offer for BPSL. The report, citing experts, further added that JSW Steel can also enter the race. Rahul Dwarkadas from Veritas Legal told Business Standard that so far, there is no hurdle for JSW Steel from rebidding for Bhushan Power and Steel. However, the only caveat as per Dwarkadas is any particular observation by the apex court.
In 2021, four years ago, JSW Steel had paid Rs 19,700 crore of BPSL’s debt to creditors. The landmark judgment will set a precedent for insolvency framework in the country, Ketan Dalal of Katalyst Advisors was quoted as saying.
In its May 2 judgment, the top court's verdict cited two major reasons: JSW’s use of a mix of equity and OCDs to complete the acquisition and second, failure to implement the plan within the timeframe mandated under insolvency law.
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