The Indian government is finalizing its response to a Supreme Court ruling that nullified JSW Steel’s 2021 acquisition of Bhushan Power & Steel under insolvency proceedings, ordering liquidation instead. The deal, worth ₹197B ($2.35B), had already repaid creditors, but the court’s surprise reversal has left banks and officials scrambling.
Key Developments:
- Government Review: The Department of Financial Services (DFS) consulted lenders and legal experts, with a formal response expected soon.
- Creditor Impact: Bhushan Power owed ₹470B ($5.58B) before its 2017 insolvency; JSW’s resolution plan had cleared most dues.
- Market Reaction: JSW Steel’s shares fell 5.5% on Friday and dipped another 1% Monday amid uncertainty.
- JSW’s Stance: The company said it would decide its “further course of action,” leaving options like a review petition open.
India Govt, Banks Weigh Response After Top Court Cancels JSW Steel’s $2.35B Bhushan Power Deal