Adani Enterprises wins creditor nod for $1.53 billion takeover plan for Jaiprakash Associates, sources say
Creditors of India’s Jaiprakash Associates unanimously backed Adani Enterprises’ 135 billion rupees ($1.53 billion) takeover bid for the bankrupt infrastructure group, preferring it to Vedanta’s offer, two officials familiar with the matter said.
Creditors, mostly Indian banks, preferred Adani’s offer over Vedanta’s higher offer of 170 billion rupees because it included larger upfront payments preferred by shareholders, officials said on Wednesday, declining to name them as the matter is private.
Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power and PNC Infratech. Controlling shareholder Manoj Gaur also submitted a last-minute offer but later withdrew it, one of the officials said.
Jaiprakash Associates, once one of India’s largest infrastructure companies, owes 550 billion rupees to creditors. Bankruptcy proceedings under India’s bankruptcy laws were initiated last June, making it one of the largest ongoing bankruptcy cases in the country.
Vedanta’s offer requires a five-year payment schedule, significantly longer than the 1.5-2 years offered by Adani, affecting creditor preferences, one of the officials said.
“The creditors voted in favor of Adani. Now the creditors’ committee is likely to take a final decision reaffirming this outcome and submit it to the National Company Law Tribunal (NCLT),” one of them added.
The National Asset Reconstruction Corporation (NARCL), which purchased Jaiprakash’s loans from a consortium of lenders led by the State Bank of India, is at the top of the list of plaintiffs in the ongoing resolution process.
Emails sent to Adani Enterprises, Vedanta and NARCL were not immediately responded to.
($1 = 88.5350 Indian rupees)
