JSW Steel’s $2.7 billion purchase of Bhushan Power faces fresh legal test1 min read . Updated: 25 Feb 2020, 09:56 AM IST
- A petition filed in Supreme Court threatens to further delay or derail the takeover
- An adverse ruling could also be a setback for lenders
JSW Steel Ltd.’s $2.7 billion purchase of a bankrupt steel mill is facing a fresh hurdle after a former chairman of Bhushan Power & Steel Ltd. challenged the deal in the country’s top court.
Sanjay Singal filed a petition on Monday against a ruling by a bankruptcy tribunal that had approved the deal earlier this month, according to the Supreme Court’s website. The petition hasn’t yet been allotted a date for a hearing. A JSW spokesman declined to comment.
Bidders for India’s bankrupt steel mills have faced repeated delays in their attempts to buy indebted assets. The Sajjan Jindal-led mill has been caught in legal tangles since its ₹19,700 crore ($2.7 billion) bid for Bhushan Power was first approved last year, while ArcelorMittal faced more than a year-long battle for its takeover of Essar Steel India Ltd.
Singal’s petition threatens to further delay or derail the takeover. An adverse ruling could also be a setback for lenders, which led by Punjab National Bank are seeking a speedy resolution.
This story has been published from a wire agency feed without modifications to the text.