Deals
First Big Bankruptcy Success Hands $5.2 Billion to India Lenders
- Creditors recover about 63% of loans to Bhushan Steel
- Deal faces hiccups given legal challenge to takeover
Tata Steel Ltd. on Friday bought insolvent Bhushan Steel Ltd.
Photographer: Abhijit Bhatlekar/Bloomberg
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The biggest asset sale under India’s new bankruptcy law offers a breather to the nation’s banks, a number of which posted record losses for last quarter.
Tata Steel Ltd. on Friday bought insolvent Bhushan Steel Ltd. and is paying 352 billion rupees ($5.2 billion) to Bhushan’s creditors. This is about 63 percent of the 560 billion rupees claimed by a consortium including State Bank of India and Punjab National Bank, the biggest government-controlled lenders in the country and Bhushan Steel’s largest creditors. Their shares rose on Monday.