The Supreme Court of India said in a judgment on Friday that JSW Steel‘s $2.3 billion takeover of Bhushan Power and Steel (BPSL) could go ahead, Reuters reported. In the judgment, the apex court reversed its own earlier decision to reject the deal.
In its judgement, the Supreme Court rejected the committee of creditors’ plea seeking Rs 6,100 crore in additional dues.
In May this year, SC had rejected the deal six years after it was first approved, unsettling buyers of other distressed assets and casting a shadow over Indian bankruptcy reforms introduced in 2016.
JSW then filed a request for it to review the rejection.
On Friday, the Supreme Court said JSW had revived BPSL by investing heavily in modernisation and safeguarded thousands of livelihoods by keeping the company a going concern.
The court said that the purpose of the Insolvency and Bankruptcy Code is to help transform a loss-making entity into a profit-making one has been achieved.