Finshots Daily The Bhushan Power & Steel rewind no one asked for
May 7, 2025
Explore the dramatic downfall of Bhushan Power and Steel, a once-mighty giant crippled by financial mismanagement. The legal battle surrounding its resolution plan reveals shocking twists that could alter India's insolvency laws. Discover how the Supreme Court's decisions have far-reaching consequences, reshaping the landscape of corporate accountability and bankruptcy in the country. Delve into a saga of ambition gone awry and the unpredictable world of corporate finance.
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BPSL's Rise and Fall
- Bhushan Power & Steel Limited ambitiously expanded in the 2000s riding India's infrastructure boom.
- Its aggressive borrowing and expansion led to financial trouble, accumulating over 47,000 crore rupees in debt by 2017.
JSW Steel Rescues BPSL
- JSW Steel acquired BPSL in 2019 by paying 41% of its debt and pledged additional funds to revive it.
- Despite legal hurdles, the resolution was approved and BPSL restarted under new management in 2021.
Supreme Court Resets BPSL Case
- The Supreme Court struck down the BPSL resolution, citing violations like exceeding IBC timelines and ignoring creditors.
- The ruling challenged the IBC's principles of transparency, fairness, and finality in insolvency resolution.