Lenders wary of JSW's Bhushan Steel proposal

The main issue with the JSW Steel proposal is the cut the lenders will have to take

Sajjan Jindal's JSW Steel is working overtime to push through a proposal for a controlling stake in Bhushan Steel but lenders, so far, seem reluctant.

A series of meetings were held last week with the management of State Bank of India (SBI) and Punjab National Bank, lead lenders of Bhushan Steel. Sajjan Jindal, chairman of the JSW group, met SBI chief Arundhati Bhattacharya last Friday to discuss the proposal, say sources.

"It is possible the lenders might go for another round of restructuring of debt for Bhushan Steel," sources indicated. They'd been exploring the option of recasting loans under the