Adani Enterprises likely to pip Vedanta to emerge highest bidder for Jaiprakash Associates
Earlier in September, mining company Vedanta Group had beaten Adani Group to emerge as the highest bidder with a bid of Rs 12.505 billion in net present value (NPV) in an auction conducted by lenders to find suitors for JAL whose interests span real estate, cement, power, hotel and road.
Dalmia Cement (Bharat) Ltd, Jindal Power Ltd and PNC Infratech Ltd did not bid during the auction process.
Lenders then held talks with these five players to increase the bid value and maximize realization.
On October 14, these five bidders submitted newly signed resolution plans in sealed envelopes.
According to sources, JAL’s committee of creditors (CoC) met last week to discuss these comprehensive resolution plans and evaluate them for feasibility and viability. The CoC evaluated the resolution plans on the basis of the evaluation matrix and scored the resolution plan of Adani Enterprise Ltd the highest, followed by Dalmia Cement (Bharat) and then Vedanta Ltd, he added. Sources said the resolution plan could be put to a vote by the CoC in the next two weeks.
Payments in Dalmia’s plans are understood to be dependent on the Supreme Court’s decision regarding the ongoing case between JAL and planning authority YEIDA.
While Adani Group offers to pay lenders within two years, Vedanta offers retroactive payments over the next five years.
Sources said last month that JAL’s former backers also offered to settle with lenders under 12A but did not specify a clear source of funds.
Officials added that such offers are generally made with the aim of derailing the solution process.
Organizers had previously objected to the process and tried to get a postponement, which the courts did not approve.
Sources said that in an overall assessment of the plans and treatment of all stakeholders, the CoC is expected to vote for Adani Enterprises Ltd for resolution and turnaround of JAL.
JAL, which operates in real estate, cement manufacturing, hospitality, engineering and construction, was admitted to the Corporate Insolvency Resolution Process (CIRP) through the Allahabad Bench of the National Company Law Tribunal by order dated June 3, 2024.
JAL was placed in bankruptcy proceedings after the conglomerate defaulted on loan payments.
The financial creditors’ claim of around Rs 60,000 crore was accepted by the resolution professional. More than a thousand home buyers are stuck with JAL’s various projects.
National Asset Reconstruction Company Ltd (NARCL) tops the list of claimants after receiving stressed JAL loans from a consortium of lenders headed by State Bank of India (SBI).
In April this year, 25 companies expressed interest in acquiring JAL. But in June, JAL announced that it had received five offers with earnest money to acquire the company through the bankruptcy process.
Adani Enterprises, Dalmia Cement, Vedanta Group, Jindal Power and PNC Infratech had made bids to acquire JAL.
In September, the CoC conducted the objection process, with Vedanta emerging as the highest bidder.
JAL has major real estate projects such as Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital) and Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.
It also has three commercial/industrial office spaces in Delhi-NCR, while the hotel division has five properties in Delhi-NCR, Mussoorie and Agra.
JAL has four cement plants in Madhya Pradesh and Uttar Pradesh and several leased limestone mines in Madhya Pradesh. However, cement factories are not in operation.
It also has investments in subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd and many other companies.
Financial stress and bankruptcy have affected JAL’s businesses, including its cement manufacturing units and EPC projects of national importance such as the Pakal Dul Dam project in Jammu and Kashmir, Srisailam Canal project in Andhra Pradesh.
