JSW Steel seeks time till March to close BPSL deal – The Economic Times

Clipped from: https://economictimes.indiatimes.com

The company has sought “flexibility up to March 31, 2021, for implementation” of the Rs 19,700 crore resolution plan due to the “dislocation of the financial markets” caused by the Covid-19 pandemic, it said in a letter last week to the committee of creditors led by Punjab National Bank that ET has seen.By Joel Rebello and Satish John, ET Bureau |Updated: June 26, 2020, 06.06AM IST

MUMBAI: Sajjan Jindal-led JSW Steel has asked for time until March next year to complete the acquisition of Bhushan Power & Steel Ltd (BPSL) as part of an insolvency resolution plan. Creditors had expected JSW to start making payments by March this year. The company has sought “flexibility up to March 31, 2021, for implementation” of the Rs 19,700the lenders in its letter that it’s committed to the transaction because the deal is “strategic” for the company. To be sure, JSW has invested in infrastructure in Odisha by aggressively bidding for iron ore mines, ahead of completing the BPSL acquisition. Bankers fear the company may have second thoughts because of the sharp downturn in India’s economic prospects.

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