By Arpan Chaturvedi
(Reuters) -India’s Supreme Court said on Friday that JSW Steel’s $2.3 billion takeover of Bhushan Power and Steel (BPSL) could go ahead, reversing its own earlier decision to reject the deal.
In May, the country’s top court rejected the deal six years after it was first approved, unsettling buyers of other distressed assets and casting a shadow over Indian bankruptcy reforms introduced in 2016.
JSW then filed a request for it to review the rejection.
On Friday, the court said JSW had revived BPSL by investing heavily in modernization and safeguarded thousands of livelihoods by keeping the company a going concern.
The purpose of the Insolvency and Bankruptcy Code – to help transform a loss-making entity into a profit-making one – has been achieved, the court said.
Shares of JSW Steel were trading 0.4% higher after the news.
(Reporting by Arpan Chaturvedi and Chandini Monnappa; Editing by Clarence Fernandez and Edwina Gibbs)
