JSW’s $2.2 Billion Bhushan Power Deal Upheld by Top Court

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India’s upper court confirmed the acquisition of JSW Steel Ltd.’s 197 billion Rupi ($ 2.2 billion) debt -loaded rival Bhushan Power & Steel Ltd.

Three judges ruled by India’s Chief Justice approved the validity of the acquisition by JSW on Friday with a debt solution process. The court also rejected the request for additional payment from the Loan -largest steel manufacturer JSW.

The Court said in a decision, to allow any claim to be reopened, it will mean violence on the provisions of the law, ”he said. This added that the delay cannot be attributed to JSW because the agreement was caught in legal proceedings. The lenders were looking for more money to take into account JSW’s earnings from Bhushan Power during the delay of acquisition.

The decision has now increased the annual raw steel capacity of the unit by 65% ​​after completing the acquisition in 2021, a great relief for Tycoon Sajjan Jindal’s company, which currently considers Bhushan Power as a subsidiary.

“Therefore, if it is accepted, we cannot find any value in the opinions that will defeat the purpose of the bankruptcy laws en, and the judges wrote in turn, protecting the decision plan. He added that the results would be “disaster” if he is allowed to refuse the agreement or to allow additional payments.

In July, two judges, chaired by Gavai, called the Supreme Court’s order to reject JSW’s plan, and called the decision to be heard again. In May, the Court refused to buy, saying that India did not comply with the bankruptcy laws and ordered the liquidation of Bhushan power. JSW asked some lenders to review this decision.

India’s legal process allows the upper court decision to be reviewed only on some limited reasons, such as visible errors.

(Updated from the order in the fifth paragraph with details.)

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