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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Acquirer JSW Steel and the other parties to the resolution process of the insolvent entity vitiated the sanctity of the bankruptcy code, the apex court found.
Every party in the acquisition of insolvent steelmaker Bhushan Power and Steel Ltd stretched the law—its lenders, the resolution professional, the acquirer JSW Steel and even the NCLT and NCLAT, which approved the deal.
This is the sum total of the Supreme Court’s verdict that on Friday cancelled the acquisition and ordered BPSL’s liquidation.
Since the verdict, concerns have been expressed about the sanctity of the bankruptcy resolution process. If Indian courts can cancel a resolution years later and liquidate a turned-around business, can anyone have faith in the Insolvency and Bankruptcy Code (IBC)? And, is JSW Steel a victim …
The JSW Steel founder is embarking on an unprecedented expansion, betting on Japan’s JFE and Korea’s POSCO to share the load. But rivalries, debt and market risks could complicate the plan.
Despite a higher offer, creditors chose Gautam Adani’s Adani Enterprises—setting up a courtroom fight that raises questions over the bankruptcy resolution process’s priorities.
A sharper growth push from Tata Steel is reshaping a long-running contest with JSW Steel and shifting the market’s loyalties. But can it keep its expansion-hungry rival at bay?
