JSW Steel has formally requested a ₹19,300 crore refund from banks following the Supreme Court’s decision to nullify its 2019 acquisition of Bhushan Power and Steel Ltd. (BPSL). The company has also sought a 60-day stay on the liquidation process, citing potential financial and operational disruptions.
Supreme Court Ruling & Refund Demand
Earlier this month, the Supreme Court overturned JSW Steel’s resolution plan, citing compliance issues and ordering BPSL’s liquidation. The ruling mandates that financial creditors return the upfront payment made by JSW Steel under the ₹19,300 crore resolution plan.
JSW Steel has sent demand notices to banks, emphasizing that the refund request aligns with the apex court’s judgment. The company is also exploring legal remedies, including a review petition, to challenge the liquidation order.
Impact on Creditors & Market Sentiment
- BPSL’s Financial Liabilities: At the time of insolvency admission, BPSL had outstanding debts exceeding ₹45,000 crore.
- Committee of Creditors (CoC) Role: The CoC holds the authority to appoint a liquidator and oversee the liquidation process.
- Stock Market Reaction: JSW Steel’s stock witnessed marginal volatility following the Supreme Court ruling, with investors closely monitoring further developments.
Legal & Industry Implications
JSW Steel argues that BPSL’s assets have appreciated since the resolution plan’s implementation, making liquidation detrimental to stakeholders. The company has urged the National Company Law Tribunal (NCLT) to pause proceedings while it explores legal options.
With India’s insolvency framework evolving, this case could set a precedent for future corporate resolutions. Analysts suggest monitoring regulatory updates as JSW Steel navigates its legal battle.
Stay tuned for more updates on India’s corporate landscape and financial markets! 🚀
