Debt-laden infrastructure conglomerate Jaiprakash Associates Ltd (JAL) has received five resolution plans as part of its ongoing corporate insolvency process, with major players like Adani Enterprises, Vedanta, Jindal Power, Dalmia Bharat Cement, and PNC Infratech emerging as the top contenders.
🏗️ Bidding War for a Stressed Giant
The bids, submitted with earnest money deposits, were opened by the Committee of Creditors (CoC) on June 26, following the deadline set under the Request for Resolution Plan (RFRP). The offers reportedly range between ₹10,000 crore and ₹11,000 crore, and aim to acquire JAL’s entire asset portfolio.
JAL was admitted into the Corporate Insolvency Resolution Process (CIRP) by the NCLT Allahabad Bench on June 3, 2024, after defaulting on loans worth ₹57,185 crore.
🏢 What’s on the Table?
The resolution plans cover JAL’s vast and diverse assets, including:
- Real Estate: Jaypee Greens (Greater Noida), Wishtown (Noida), and Jaypee International Sports City near Jewar Airport
- Cement Plants: Four non-operational units in Uttar Pradesh and Madhya Pradesh
- Hospitality: Hotels in Delhi-NCR, Agra, and Mussoorie
- Commercial Properties: Three office spaces in Delhi-NCR
- Infrastructure: Land parcels along the Yamuna Expressway, some under litigation
⚠️ Legal Hurdles and Valuation Concerns
Bidders have raised red flags over the legal status of 965 hectares of land, fearing a repeat of the Bhushan Steel-JSW asset control dispute. Questions remain over whether these parcels can be treated as corporate assets under insolvency, potentially impacting final valuations.
💰 Who Holds the Cards?
The National Asset Reconstruction Company Ltd (NARCL), which acquired a bulk of JAL’s debt from an SBI-led consortium, is the largest financial claimant, holding 90% of the debt. Other creditors include ACRE, Arcil, and foreign lenders.
The CoC will now evaluate the bids based on value, structure, and legal feasibility, with a final decision expected in the coming weeks.
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