JSW Steel challenges Rs 6,155 crore EBITDA claim in BPSL dispute
JSW Steel
on Monday criticised the lenders of
Bhushan Power and Steel
(BPSL) for claiming interest and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of over ₹6,155 crore generated during the
debt-laden firm
's insolvency between 2017 and 2021.
Accusing the lenders of shifting their position, senior counsel NK Kaul, appearing for JSW, told the Supreme Court that the committee of creditors (CoC) had not made such claims earlier.
He told a Bench led by Chief Justice BR Gavai that EBITDA, being an essential asset, was not distributable profit, and neither the request for
resolution plan
(RFRP) nor its resolution plan included any provision for it. "No law or statute mandates its distribution," he argued, adding, "Had the RFRP provided for it, I would have bid accordingly. I took a risk and tailored my bid accordingly. EBITDA is not profit; with depreciation and amortisation, value declines. If the RFRP, plan and law do not include it, you (CoC) cannot force a party to share EBITDA with them."
JSW, which acquired the firm in 2021, said the CoC had not raised this issue before and asked, "Why raise it now? When we bid for the company, it meant taking all losses and profits. We bid on an 'as is where is' basis."
JSW Steel also contested the lenders' claim for ₹2,509.88 crore interest over alleged delay in implementing the ₹19,700 crore resolution plan, stating there was no delay attributable to the company.
The senior counsel said the two-year delay was entirely caused by the Directorate of Enforcement's provisional attachment of BPSL's assets, lifted only in December last year by the apex court.
On Monday, the Supreme Court reserved judgment on pleas by multiple stakeholders-including the CoC, Directorate of Enforcement,
operational creditor
Kalyani Transco, former promoter Sanjay Singhal, Odisha, and others-challenging JSW Steel's resolution plan.
In a rare move on July 31, the court recalled its May 2 judgment scrapping JSW Steel's acquisition of BPSL and ordering its liquidation, granting interim relief to the Sajjan Jindal-led company, which claimed to have invested ₹30,000 crore to revive the bankrupt steelmaker.
The Chief Justice-led Bench allowed review pleas filed by JSW Steel and BPSL's lenders, including
State Bank of India
and
Punjab National Bank
, holding this "is a fit case" where the judgment "needs to be recalled and the matter considered afresh."
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