Creditors to Bhushan Power & Steel, including State Bank of India, Punjab National Bank, and Asset Care Reconstruction Enterprise (ACRE), are assessing the legal paths available to them after the Supreme Court decision to annul JSW Steel’s ₹19,350-crore resolution plan and order liquidation.
The lenders are weighing a review petition and may reappoint legal advisors Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas, who had advised on the earlier resolution, sources said.
“There’s a lot of uncertainty both legal and procedural. For now, lenders are convening informally under the joint lenders’ forum,” said a source.
The Insolvency and Bankruptcy Board of India and the Department of Financial Services are also examining the court ruling’s broader implications, which could have far reaching consequences on the Insolvency and Bankruptcy Code (IBC) framework.”There are significant implications if the transaction is unwound, taxes have been paid, capital expenditure has been initiated, and funds have been deployed. The practical challenges of returning the money are enormous,” a senior banker involved in the process told this publication, requesting anonymity.
Source: Economic Times