Deals
India Bankruptcy Delays Lift Bidders' Funding Tab, JSW Says
- Funding for assets can’t be locked in for long periods: JSW
- Mill expects to raise capacity to 24 million tons this year
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Delays in the sale of assets under India’s bankruptcy law are becoming a key challenge for bidders who “cannot wait indefinitely” because of funding constraints, according to JSW Steel Ltd.
The Sajjan Jindal-run mill, which has bid for many companies under the insolvency law since sales of distressed firms began in 2017, is among bidders who have faced repeated delays in their attempts to buy indebted assets. A bidder has to tie up the capital for investing in an asset when submitting a resolution plan and “it is not possible for any company, big or small, to keep the funding ready forever,” said Seshagiri Rao, joint managing director of the steel mill.