Mumbai: JSW Steel Ltd will not be able to seek an equity partner in the initial stage of its acquisition of bankrupt Bhushan Power and Steel Ltd (BPSL), said a senior company executive.
Recent rulings by courts under the Insolvency and Bankruptcy Code (IBC) state that the structure of a resolution applicant, whether as an individual or a consortium, has to be maintained from the time of submitting an expression of interest till the completion of the deal, M.V.S. Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel said in an interview last week.
JSW Steel made the highest bid for BPSL, with an upfront cash payment of ₹19,350 crore to the lenders of BPSL, and an equity infusion of ₹350 crore to revive the steel mill’s operations.
