JSW Steel Raises BPSL Offer
<span style="font-weight: 400;">In a bid to cash in on the steel upcycle, JSW Steel has offered to make the upfront payment to lenders of Bhushan Power & Steel to close more than a three-year corporate insolvency resolution process (CIRP). Additionally, the offer is being upped by Rs 400 crore t
Published -
Dec 5, 2020 4:16 AM
In a bid to cash in on the steel upcycle, JSW Steel has offered to make the upfront payment to lenders of Bhushan Power & Steel to close more than a three-year corporate insolvency resolution process (CIRP). Additionally, the offer is being upped by Rs 400 crore to sweeten the deal. The proposal was made last week and the payment will be made subject to a bank guarantee or indemnity bond from lenders, so that in case the Supreme Court invalidates JSW’s resolution plan, the settlement amount will be reversed. Lenders are yet to accept the proposal. JSW Steel’s upfront payment to financial creditors was Rs 19,350 crore; with this additional Rs 400 crore, it would stand enhanced at Rs 19,750 crore; admitted claims of financial creditors is Rs 47,157.99 crore. 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 steel industry have changed with prices touching a two-year high and spreads at a three-year high.