NEW DELHI: Creditors of Jaiprakash Associates Ltd (JAL) have declined Jaypee Infratech’s bid to accept its resolution plan for the acquisition of the financially troubled company.
Five firms—Adani Enterprises, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech—have put forth their plans for JAL’s acquisition.
On June 25, JAL’s lenders rejected Jaypee Infratech’s resolution plan from Suraksha Group, citing its late submission and lack of earnest money.
Sources indicate that Jaypee Infratech has requested the Committee of Creditors (CoC) of JAL to reconsider their decision and allow participation in the insolvency process.
During a meeting on July 1, CoC members unanimously upheld their prior decision to reject Jaypee Infratech’s proposal.
In this meeting, the resolution professional provided a brief overview of the five competing plans, and a detailed summary will be created to identify the leading bidder.
Some proposals are conditional and contingent upon pending legal proceedings.
JAL is involved in a diverse range of sectors including real estate, cement production, hospitality, and engineering & construction. The company was admitted to the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal, Allahabad Bench, on June 3, 2024, following defaults on loan repayments.
Creditors are pursuing claims totaling an astounding ₹57,185 crore, with the National Asset Reconstruction Company Ltd (NARCL) leading claims after acquiring distressed JAL loans from a consortium headed by the State Bank of India (SBI).
Major real estate developments by JAL include Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the forthcoming Jewar International Airport. They also own three commercial/industrial office spaces in the Delhi-NCR region and five hotels located in Delhi-NCR, Mussoorie, and Agra.
JAL operates four cement plants in Madhya Pradesh and Uttar Pradesh, although these plants are currently non-operational, along with some leased limestone mines in Madhya Pradesh. The firm holds investments in various subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, among others.
Jaypee Infratech has previously been acquired by the Mumbai-based Suraksha Group through an insolvency process, which is now tasked with completing numerous halted projects comprising around 20,000 apartments in Noida and Greater Noida.
