JSW Steel Ready to Pay for BPSL by March End
Economic Times reported that JSW Steel has formally written to committee of creditors its intent to complete the acquisition of Bhushan Power and Steel by transferring the deal amount of INR 19,350 crore into a PNB escrow account, with conditions, bringing the four year-old resolution process a step closer to completion.
CNBC TV in a separate report said that lenders will vote next week on JSW Steel’s proposal for taking over the troubled company. BPSL lenders will be voting to decide if they would be returning JSW Steel’s money in case there is an adverse order by the Supreme Court after the deal has been closed.
JSW Steel has sought an indemnity cover from the banks in case the order in the BPSL case is unfavourable to it.
JSW’s readiness to pay is a change from an earlier stance. In June, after the Covid-19 pandemic, it had sought flexibility in payment schedule for its bid, but lenders had rejected the demand. Between then and now, however, the fortunes of the Indian steel industry have changed. The closure of BPSL would add about 3 million tonnes capacity to JSW Steel’s existing 18 million tonnes.