NEW DELHI: Adani Enterprises Ltd is expected to be the top bidder for the acquisition of Jaiprakash Associates Ltd (JAL) through an insolvency process, as its proposal to make payment over two years has been deemed more favorable than Vedanta’s five-year payment plan, sources indicated.
In early September, Vedanta Group had outbid Adani Group with a net present value (NPV) offer of Rs 12,505 crore in an auction led by lenders to find buyers for JAL, which operates in sectors including real estate, cement, power, hotels, and roads.
Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd did not participate in the auction process.
Subsequently, lenders negotiated with five participants to increase bid values and maximize potential returns.
On October 14, these bidders submitted revised signed resolution plans in sealed envelopes.
Sources revealed that the committee of creditors (CoC) for JAL convened last week to evaluate these comprehensive resolution plans for viability and feasibility.
The CoC assessed the plans based on a scoring matrix, ranking Adani Enterprises Ltd’s resolution plan highest, followed by Dalmia Cement (Bharat) and Vedanta Ltd.
It is expected that the CoC will put the resolution plan to a vote in the next two weeks.
Dalmia’s payment plans are contingent upon a Supreme Court ruling regarding an ongoing dispute between JAL and the YEIDA development authority.
Adani Group is committed to paying lenders within two years, while Vedanta’s proposal suggests back-ended payment over five years.
Last month, JAL’s former promoters also made a settlement offer to lenders under Section 12A, but did not provide a clear source of funding, according to sources.
Such offers are typically seen as attempts to disrupt the resolution process.
Previously, the promoters contested the process and sought a stay, which the courts denied.
Given the overall assessment of the bids and consideration for all stakeholders, it is anticipated that the CoC may favor Adani Enterprises Ltd for the resolution and recovery of JAL.
JAL’s business portfolio includes real estate, cement production, hospitality, and engineering construction, with its entry into the Corporate Insolvency Resolution Process (CIRP) initiated by the National Company Law Tribunal on June 3, 2024.
The company entered insolvency proceedings after failing to meet loan repayment obligations.
The resolution professional admitted creditor claims totaling approximately Rs 60,000 crore, affecting over a thousand homebuyers involved in various JAL projects.
The National Asset Reconstruction Company Ltd (NARCL) leads the claims list after acquiring stressed JAL loans from a State Bank of India (SBI)-led consortium.
In April, 25 companies expressed interest in acquiring JAL. By June, JAL announced it had received five earnest bids for acquisition through the insolvency process from Adani Enterprises, Dalmia Cement, Vedanta Group, Jindal Power, and PNC Infratech.
During the challenge process in September, Vedanta emerged as the highest bidder.
JAL has major projects, such as Jaypee Greens in Greater Noida and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.
Additionally, it owns three commercial office spaces in the Delhi-NCR region, and its hotel division includes multiple properties in Delhi-NCR, Mussoorie, and Agra.
JAL operates four cement plants in Madhya Pradesh and Uttar Pradesh, though these plants are currently non-operational, and it holds some leased limestone mines in Madhya Pradesh.
The company has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.
The financial strain from insolvency has affected JAL’s operations, including its cement manufacturing and critically important EPC projects like the Pakal Dul Dam in Jammu & Kashmir and the Srisailam Canal project in Andhra Pradesh.
