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Adani Enterprises Ltd is likely to be chosen as the highest bidder to acquire Jaiprakash Associates Ltd (JAL) through the ongoing insolvency process, as its plan to make payments within two years has been found more suitable than Vedanta Ltd's five-year proposal. The Committee of Creditors (CoC) recently reviewed revised resolution plans from the five shortlisted bidders, with Adani's plan receiving the highest score. The CoC is expected to vote on the resolution plan in the coming weeks. JAL's total creditor claims stand at around INR 60,000 crore.
The Committee of Creditors (CoC) of Jaiprakash Associates Ltd (JAL) recently reviewed the final resolution plans submitted by five interested bidders and is expected to vote on the selected plan within the next two weeks. According to sources, Adani Enterprises Ltd?s proposal to make full payments to lenders within two years has been rated higher than Vedanta Ltd?s plan, which involves staggered payments over five years. Advertisement
In early September, Vedanta had been named the highest bidder in the auction conducted by lenders, offering an acquisition value with a net present value (NPV) of INR 12,505 crore. Following the auction, lenders held further discussions with all five shortlisted bidders Adani Enterprises, Vedanta, Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd to seek higher offers and improve recovery for creditors. These companies later submitted revised resolution plans in sealed envelopes, which were evaluated by the CoC last week.
The CoC assessed the bids on the basis of feasibility, financial viability, and treatment of all stakeholders. Sources said Adani Enterprises? plan received the highest score, followed by Dalmia Cement and then Vedanta. Dalmia?s offer, however, includes conditional payments linked to the outcome of a Supreme Court case between JAL and the Yamuna Expressway Industrial Development Authority (YEIDA).
Meanwhile, JAL?s former promoters had also submitted a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code. However, they did not specify any clear source of funds, leading lenders to believe the proposal was aimed at delaying the resolution process. Earlier attempts by the promoters to seek a stay on the insolvency proceedings were also dismissed by the courts.
JAL was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Allahabad Bench, through an order issued in June 2024. The company entered insolvency proceedings after defaulting on its loan repayments. Financial creditors? claims amount to around INR 60,000 crore, with the National Asset Reconstruction Company Ltd (NARCL) being the largest claimant after acquiring JAL?s stressed loans from a consortium led by the State Bank of India (SBI).
In April this year, 25 companies had expressed interest in acquiring JAL. However, by June, only five firms submitted formal bids with earnest money. During the challenge process held in September, Vedanta had initially emerged as the top bidder before Adani Enterprises revised its offer.
JAL has a diversified business portfolio that includes real estate, cement, hospitality, and engineering and construction. Its major real estate projects include Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and Jaypee International Sports City near the upcoming Jewar International Airport. The company also owns commercial and office spaces in Delhi-NCR, along with hotels in Delhi-NCR, Mussoorie, and Agra.
In addition, JAL operates four cement plants in Uttar Pradesh and Madhya Pradesh, which are currently non-operational, and holds leased limestone mines in Madhya Pradesh. It also has investments in subsidiaries such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd. The company?s financial strain has affected several projects, including the Pakal Dul Dam in Jammu and Kashmir and the Srisailam Canal project in Andhra Pradesh.
Source PTI
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