Two years after the Reserve Bank of India asked banks to start bankruptcy proceedings against Bhushan Power & Steel Ltd, the debt-laden company has finally managed to get a buyer.
In the biggest news in the distressed asset segment this past week, billionaire Sajjan Jindal-led JSW Steel Ltd received approval from the National Company Law Tribunal to take over Bhushan Power for around Rs 19,700 crore ($2.7 billion).
This is the second steel company that JSW is buying after the purchase of Monnet Ispat & Energy Ltd last year.
Meanwhile, hopes for reviving Jet Airways are getting bleaker. Moreover, a report said that creditors of the bankrupt airline are likely to recover less than 10% of the carrier’s outstanding dues if it fails to find a suitor.
In policy news, a committee set up by the RBI recommended a number of steps to develop a secondary market for corporate loans and allow foreign portfolio investors to directly purchase distressed loans from banks.
India currently allows foreign portfolio investors to invest in stressed assets through asset reconstruction companies.