By Arpan Chaturvedi
NEW DELHI (Reuters) -India’s top court on Monday halted the liquidation proceedings of Bhushan Power and Steel (BPSL), weeks after it rejected JSW Steel’s $2.3 billion deal to acquire the firm.
The ruling came after JSW Steel and some creditors of Bhushan Power and Steel told the Supreme Court they will be filing a review petition against the order from earlier this month, which quashed its acquisition of Bhushan Power and Steel and ordered liquidation of the firm.
JSW Steel’s shares hit session’s high after the order and were last trading 2.2% higher.
The liquidation proceedings were to take place at the National Company Law Tribunal in New Delhi. On Monday, the top court ordered a pause on the tribunal proceedings to allow JSW Steel and the creditors of Bhushan Power to seek a review of its earlier May 2 ruling which scrapped the takeover.
The ruling, which came six years after the takeover plan was first approved, had also unsettled buyers of other distressed assets, casting a shadow over India’s bankruptcy reforms introduced in 2016, Reuters has previously reported.
The top court on Monday said the pause will be in effect until the review petition against the scrapping of the deal is filed and taken up.
(Reporting by Arpan Chaturvedi in New Delhi, Writing by Manvi Pant; Editing by Mrigank Dhaniwala and David Evans)
