The Verdict
- JSW Steel has obtained its ultimate clearance for the acquisition of Bhushan power and steel ltd (BPSL) in a bid valued at 2.3 billion (Rs.19,350 crore).
- This decision overturns the previous deliberation of the court on the liquidation of the company with heavy debt.
Significance for the IBC
- This ruling is an achievement of the Insolvency and Bankruptcy Code (IBC), 2016.
- It supports the primary goal of the IBC, which is to focus on revival and resolving of troubled companies rather than liquidation of such companies thus saving economic value and employment.
JSW Steel Financial Result.
- In 2021, JSW Steel carried out the acquisition.
- BPSL has been a successful revenue and profit generator at JSW steel since its integration.
Key IBC Process Details
- Corporate Insolvency Resolution Process (CIRP) is a process initiated under the IBC in case of default on a loan by a company.
- It may be caused by either a creditor (financial or operational) or the corporate debtor himself.
- Default Threshold: The value of default that activates CIRP was raised to 1 crore instead of 1 lakh and was raised in response to the COVID-19 pandemic to ensure that viable businesses are not affected by the insolvency process.
Month: Current Affairs - October 06, 2025
Category: ACQUISITIONS AND MERGERS