JSW’s $2.7 Billion Steel Mill Purchase Faces Fresh Legal Test
(Bloomberg) -- JSW Steel Ltd.’s $2.7 billion purchase of a bankrupt steel mill is facing a fresh hurdle after a former chairman of Bhushan Power & Steel Ltd. challenged the deal in the country’s top court.
Sanjay Singal filed a petition on Monday against a ruling by a bankruptcy tribunal that had approved the deal earlier this month, according to the Supreme Court’s website. The petition hasn’t yet been allotted a date for a hearing. A JSW spokesman declined to comment.
Bidders for India’s bankrupt steel mills have faced repeated delays in their attempts to buy indebted assets. The Sajjan Jindal-led mill has been caught in legal tangles since its 197 billion-rupee ($2.7 billion) bid for Bhushan Power was first approved last year, while ArcelorMittal faced more than a year-long battle for its takeover of Essar Steel India Ltd.
Singal’s petition threatens to further delay or derail the takeover. An adverse ruling could also be a setback for lenders, which led by Punjab National Bank are seeking a speedy resolution.
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