Supreme Court Sets Aside BSPL's Sale to JSW Steel: Lenders Face Tough Decisions
The Supreme Court has overturned the sale of Bhushan Steel and Power Ltd to JSW Steel due to legal violations, leaving creditors to decide on next steps. Punjab National Bank, a lead lender, is involved in strategizing after the ruling, which mandates BSPL's liquidation despite an initial winning bid.
- Country:
- India
The Supreme Court has delivered a landmark verdict nullifying the sale of Bhushan Steel and Power Ltd (BSPL) to JSW Steel, citing violations of the Insolvency and Bankruptcy Code (IBC). This decision has prompted lenders, led by Punjab National Bank (PNB), to contemplate their next move.
PNB, which spearheaded the lending group claiming Rs 47,204 crore from BSPL, received about Rs 3,000 crore as part of an initial resolution. However, the apex court's ruling orders BSPL's liquidation, a move that could reduce the company's potential value.
Following the Supreme Court's criticism of the key stakeholders involved, including the resolution professional and the Committee of Creditors, PNB's MD and CEO Ashok Chandra confirmed imminent discussions to determine future actions.
(With inputs from agencies.)
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- Supreme Court
- BSPL
- JSW Steel
- involvency
- PNB
- IBC
- ruling
- liquidation
- creditors
- lenders
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