JSW Steel seeks immunity from SC to buy - and sell - bankrupt Bhushan Power
JSW Steel is keen to de-risk its acquisition of Bhushan Power and Steel as it has an expansion plan on cards, and is also facing unprecedented challenges in the steel market
- Jul 21, 2020,
- Updated Nov 24, 2020 2:06 PM IST
If the Supreme Court allows immunity from prosecution for the assets of Bhushan Power and Steel (BPSL), the lead bidder JSW Steel may rope in strategic investor, divesting 49 per cent stake in the bankrupt firm, to complete the deal despite the volatility in the market. JSW Steel had agreed to acquire BPSL for Rs 19,700 crore in the bankruptcy proceedings.
Though JSW Steel had been adjudged as the winner for the BPSL assets in September 2019, the company failed to conclude the deal after Enforcement Directorate intervened. The central probe agency wanted to attach the assets as part of the pending corruption charges against erstwhile promoters, the Singal family. JSW will proceed with the acquisition if the Supreme Court grants protection for the BPSL assets under the Insolvency and Bankruptcy Code (IBC), the management stated earlier.
If the Supreme Court allows immunity from prosecution for the assets of Bhushan Power and Steel (BPSL), the lead bidder JSW Steel may rope in strategic investor, divesting 49 per cent stake in the bankrupt firm, to complete the deal despite the volatility in the market. JSW Steel had agreed to acquire BPSL for Rs 19,700 crore in the bankruptcy proceedings.
Though JSW Steel had been adjudged as the winner for the BPSL assets in September 2019, the company failed to conclude the deal after Enforcement Directorate intervened. The central probe agency wanted to attach the assets as part of the pending corruption charges against erstwhile promoters, the Singal family. JSW will proceed with the acquisition if the Supreme Court grants protection for the BPSL assets under the Insolvency and Bankruptcy Code (IBC), the management stated earlier.