Adani likely top bidder for Jaiprakash Associates takeover
ECONOMY & POLICY

Adani likely top bidder for Jaiprakash Associates takeover

Adani Enterprises Ltd is poised to emerge as the highest bidder to acquire Jaiprakash Associates Ltd (JAL) through the insolvency process, with its offer to repay lenders within two years deemed superior to Vedanta Group’s five-year payment plan, according to a PTI report.

In September, Vedanta had initially outbid Adani with an offer valued at Rs 125.05 billion (net present value) in an auction conducted by lenders for the debt-ridden JAL, which has interests across real estate, cement, power, hotels, and infrastructure. Other bidders, including Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd, had abstained from that round.

Following negotiations aimed at enhancing bid value and maximising recovery, all five contenders submitted revised resolution plans on October 14. The Committee of Creditors (CoC) assessed the updated bids last week, evaluating feasibility and viability through a scoring matrix. Adani’s proposal emerged as the most favourable, followed by Dalmia Cement and Vedanta. The CoC is expected to vote on Adani’s plan within the next fortnight.

Sources noted that Dalmia’s bid was partly dependent on an impending Supreme Court verdict regarding JAL’s dispute with the Yamuna Expressway Industrial Development Authority (YEIDA). Adani’s plan, offering full repayment within two years, outperformed Vedanta’s back-ended five-year proposal.

JAL’s former promoters had earlier submitted a settlement offer under Section 12A of the Insolvency and Bankruptcy Code, but the proposal lacked clarity on financing sources. Previous attempts by the promoters to stay the proceedings were rejected by the courts.

The CoC’s review of all bids — including stakeholder treatment and financial strength — indicates that Adani Enterprises is now the preferred contender to acquire and revive JAL.

The company entered the Corporate Insolvency Resolution Process (CIRP) under an NCLT Allahabad order on 3 June 2024, after defaulting on loans totalling about Rs 600 billion. The National Asset Reconstruction Company Ltd (NARCL) has emerged as the largest creditor after purchasing stressed assets from a consortium led by State Bank of India (SBI).

JAL’s extensive asset portfolio includes major real estate projects such as Jaypee Greens in Greater Noida, sections of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport. It also owns five hotels across Delhi-NCR, Mussoorie, and Agra, and holds four cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh.

The group’s financial distress has disrupted operations across its cement and infrastructure divisions, impacting national projects like the Pakal Dul Dam in Jammu & Kashmir and the Srisailam Canal Project in Andhra Pradesh.

Adani Enterprises Ltd is poised to emerge as the highest bidder to acquire Jaiprakash Associates Ltd (JAL) through the insolvency process, with its offer to repay lenders within two years deemed superior to Vedanta Group’s five-year payment plan, according to a PTI report. In September, Vedanta had initially outbid Adani with an offer valued at Rs 125.05 billion (net present value) in an auction conducted by lenders for the debt-ridden JAL, which has interests across real estate, cement, power, hotels, and infrastructure. Other bidders, including Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd, had abstained from that round. Following negotiations aimed at enhancing bid value and maximising recovery, all five contenders submitted revised resolution plans on October 14. The Committee of Creditors (CoC) assessed the updated bids last week, evaluating feasibility and viability through a scoring matrix. Adani’s proposal emerged as the most favourable, followed by Dalmia Cement and Vedanta. The CoC is expected to vote on Adani’s plan within the next fortnight. Sources noted that Dalmia’s bid was partly dependent on an impending Supreme Court verdict regarding JAL’s dispute with the Yamuna Expressway Industrial Development Authority (YEIDA). Adani’s plan, offering full repayment within two years, outperformed Vedanta’s back-ended five-year proposal. JAL’s former promoters had earlier submitted a settlement offer under Section 12A of the Insolvency and Bankruptcy Code, but the proposal lacked clarity on financing sources. Previous attempts by the promoters to stay the proceedings were rejected by the courts. The CoC’s review of all bids — including stakeholder treatment and financial strength — indicates that Adani Enterprises is now the preferred contender to acquire and revive JAL. The company entered the Corporate Insolvency Resolution Process (CIRP) under an NCLT Allahabad order on 3 June 2024, after defaulting on loans totalling about Rs 600 billion. The National Asset Reconstruction Company Ltd (NARCL) has emerged as the largest creditor after purchasing stressed assets from a consortium led by State Bank of India (SBI). JAL’s extensive asset portfolio includes major real estate projects such as Jaypee Greens in Greater Noida, sections of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport. It also owns five hotels across Delhi-NCR, Mussoorie, and Agra, and holds four cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh. The group’s financial distress has disrupted operations across its cement and infrastructure divisions, impacting national projects like the Pakal Dul Dam in Jammu & Kashmir and the Srisailam Canal Project in Andhra Pradesh.

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