UltraTech Cement has reached a resolution with Jaiprakash Associates (JAL) regarding a long-standing arbitration issue, agreeing to redeem ₹1,000 crore in preference shares associated with the Dalla Super cement facility, according to sources familiar with the matter. This agreement paves the way for monetizing Jaypee assets following a bankruptcy court’s recent approval for the Adani Group to take control of JAL.
The Adani Group has proposed to pay ₹14,535 crore to acquire the bankrupt JAL in the insolvency process, although the group has not yet completed payments to creditors. The settlement with UltraTech’s flagship cement division is expected to lessen Adani’s initial cash outlay in the resolution plan, with funds flowing directly to lenders.
The disagreement stemmed from UltraTech postponing the redemption of preference shares issued in 2017, citing unresolved regulatory approvals related to the asset. JAL challenged this delay, leading to arbitration. The issue has now been amicably settled, with both parties choosing to resolve it outside of court.
A spokesperson for UltraTech did not respond immediately to a request for comment.
The ₹1,000 crore payout will be processed through an escrow mechanism, guaranteeing that the funds are protected for lenders. “Any monetization will be directed to creditors, with regulatory oversight in place,” one source indicated.
Last week, the National Company Law Tribunal (NCLT) approved the acquisition of Jaiprakash Associates by Adani Enterprises, enabling the group to take control of the financially troubled infrastructure and cement firm.
Under the agreement, even if documentation is finalized before Adani fulfills its payment obligations—which has a 90-day timeframe following NCLT plan approval—any funds from asset sales or settlements will be designated for lenders, in compliance with insolvency regulations.
