The Supreme Court’s decision to liquidate Bhushan Power and Steel is likely to have an impact on the company’s lenders, led by State Bank of India (SBI) and Punjab National Bank (PNB), and the insolvency process.
The SC order has cast a shadow on other bankruptcy cases as the total admitted claims under the Insolvency and Bankruptcy Code (IBC) stood at Rs 10.46 lakh crore as of March 2024, with financial creditors’ claims amounting to Rs 9.46 lakh crore. The big worry among bankers is that bidders for companies under IBC will be cautious and their interest in such firms could wane in the wake of the order.
Bhushan Steel owes over Rs 47,000 crore to lenders, and JSW Steel’s proposal to pay Rs 19,700 crore to financial creditors…
