Archive · 11 Aug 2025
Supreme Court to Rule on JSW Steel, Bhushan Power Dispute
The Supreme Court is deciding on a case involving JSW Steel and Bhushan Power, a steel company facing financial trouble.
The main question is about money made during the recovery process – does it go to the lenders or stay with the company?
The lenders want some of the profits and interest, while JSW Steel says the original deal didn't promise that.
Former owners also have disagreements on how JSW followed the original plan, accusing JSW of not injecting all the promised money.
The court will announce its decision later.
Supreme Court reserved its verdict on challenges to JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL).
The court is deciding whether earnings before interest, tax, depreciation, and amortisation (EBITDA) generated during the resolution period should go to creditors or remain with the company.
The Committee of Creditors (CoC) is seeking Rs 3,569 crore in EBITDA and Rs 2,500 crore in delay-related interest.
JSW Steel argues the resolution plan didn't mandate sharing EBITDA and that profits belong to them.
Former promoters challenged JSW's compliance with the resolution plan, alleging failures in capital injection.
- Who
- The Supreme Court, JSW Steel, the Committee of Creditors, and former promoters.
- What
- Supreme Court reserved its verdict on JSW Steel’s Rs 19,700-crore resolution plan for Bhushan Power and Steel Limited.
- When
- The Supreme Court reserved its verdict on Monday.
- Where
- Supreme Court.
- Why
- To determine the validity of JSW Steel's resolution plan and the distribution of funds, including EBITDA and interest.
Creditors' Perspective
JSW Steel's Perspective
EBITDA and Interest Distribution
Creditors' Perspective
The Committee of Creditors (CoC) is seeking Rs 3,569 crore in EBITDA and Rs 2,500 crore in delay-related interest.
JSW Steel's Perspective
JSW Steel argues the resolution plan did not mandate sharing EBITDA with creditors.
Plan Compliance
Creditors' Perspective
Former promoters challenge JSW’s compliance with the resolution plan, citing unmet capital injection.
JSW Steel's Perspective
JSW Steel says they bid on an as-is, where-is basis, accepting losses and profits, and that delays were due to asset attachments.
- Case
- JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL)
- Resolution Plan Amount
- Rs 19,700 crore
- EBITDA Claim by CoC
- Rs 3,569 crore
- Delay Interest Claim
- Rs 2,500 crore
- Key Issue
- EBITDA distribution during resolution period
