JSW Steel Opposes Lenders’ Claim On Bhushan Power’s Insolvency Earnings In SC

JSW Steel Ltd. told the Supreme Court Monday that lenders of Bhushan Power & Steel Ltd. cannot claim ₹35.69 billion of earnings before interest, taxes, depreciation, and amortisation generated during the company’s insolvency period. The steelmaker said the committee of creditors had not earlier demanded these earnings and that neither the resolution plan nor the law provided for such a transfer.

The company also opposed the lenders’ demand for ₹25 billion in interest for delays in implementing the resolution plan, saying the two-year delay was due to the Directorate of Enforcement’s asset attachment, lifted only in December.

The apex court reserved its verdict on pleas by operational creditor Kalyani Transco, former promoter Sanjay Singhal, and others challenging JSW Steel’s plan. Insolvency proceedings against Bhushan Power began in 2017, and JSW Steel’s plan was approved in 2019 but faced multiple delays.