Lenders of Jaiprakash Associates show concerns over settlement offer

25 Jun 2024 CW Team

Previously, on June 10, 2024, the NCLAT had instructed the banks to review JAL's OTS proposal by June 24. However, during the recent hearing, a two-member vacation bench noted that the banks had not submitted a response to the OTS proposal. The lenders' counsel explained that JAL had issued a last-minute clarification the previous night, necessitating more time for review.

After a brief hearing, the NCLAT scheduled the next hearing for July 3 and directed JAL's lenders to consider the OTS and file a reply. This appeal, filed by Sunil Kumar Sharma, a member of the suspended JAL board, challenges the Allahabad bench of the National Company Law Tribunal (NCLT)'s order. On June 3, the NCLT admitted a six-year-old petition filed by ICICI Bank in September 2018, suspended JAL's board, and appointed Bhuvan Madan as interim resolution professional.

During the last hearing, JAL's counsel stated the company's willingness to make full payment within 18 weeks if the OTS is accepted by the banks. JAL had proposed an OTS with an upfront payment of Rs 2 billion and the remaining Rs 160 billion to be paid within 18 weeks of acceptance. However, this proposal was dismissed by the Allahabad NCLT, which directed the initiation of the Corporate Insolvency Resolution Process (CIRP) against JAL.

The NCLAT's two-member vacation bench suggested that JAL may also consider depositing a larger amount by the next hearing date.

(Source: ET)

During the National Company Law Appellate Tribunal (NCLAT) proceedings, counsel for the lenders highlighted that the insolvency plea against Jaiprakash Associates Ltd (JAL) was filed in 2017, and for the past seven years, the company has stalled the process under the guise of settlement. The lenders voiced their apprehensions about the debt-ridden group's one-time settlement (OTS) proposal, expressing their lack of conviction. Previously, on June 10, 2024, the NCLAT had instructed the banks to review JAL's OTS proposal by June 24. However, during the recent hearing, a two-member vacation bench noted that the banks had not submitted a response to the OTS proposal. The lenders' counsel explained that JAL had issued a last-minute clarification the previous night, necessitating more time for review. After a brief hearing, the NCLAT scheduled the next hearing for July 3 and directed JAL's lenders to consider the OTS and file a reply. This appeal, filed by Sunil Kumar Sharma, a member of the suspended JAL board, challenges the Allahabad bench of the National Company Law Tribunal (NCLT)'s order. On June 3, the NCLT admitted a six-year-old petition filed by ICICI Bank in September 2018, suspended JAL's board, and appointed Bhuvan Madan as interim resolution professional. During the last hearing, JAL's counsel stated the company's willingness to make full payment within 18 weeks if the OTS is accepted by the banks. JAL had proposed an OTS with an upfront payment of Rs 2 billion and the remaining Rs 160 billion to be paid within 18 weeks of acceptance. However, this proposal was dismissed by the Allahabad NCLT, which directed the initiation of the Corporate Insolvency Resolution Process (CIRP) against JAL. The NCLAT's two-member vacation bench suggested that JAL may also consider depositing a larger amount by the next hearing date. (Source: ET)

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..