Creditors of Jaiprakash Associates Ltd. (commonly known as Jaypee Group) have overwhelmingly backed Adani Enterprises Ltd. in its ₹14,535-crore acquisition proposal under the ongoing insolvency process, choosing it over a higher bid of ₹17,000 crore from Vedanta Ltd. Sources cited the higher upfront payment in Adani’s proposal as the key factor driving creditor preference.
Adani’s bid was preferred because it included larger upfront payments, whereas Vedanta’s offer entailed a five-year payment timeline, significantly longer than the 1.5–2 years proposed by Adani Enterprises. One official said, “Creditors have voted in favour of Adani. Now the committee of creditors will take a final decision, likely reaffirming this outcome, and submit it to the National Company Law Tribunal (NCLT).”
According to Business Standard, “Adani got the maximum 89 per cent votes from creditors, followed by Dalmia Cement (Bharat) and Vedanta Group.” The National Asset Reconstruction Company Ltd. (NARCL), controlling roughly 86% of the Committee of Creditors’ (CoC) voting share, played a decisive role, while smaller lenders, including State Bank of India and ICICI Bank, accounting for less than 3% of the votes, abstained.
The Adani proposal includes a total plan value (TPV) of ₹14,535 crore, consisting of ₹6,005 crore upfront and ₹6,726 crore payable within two years. In net present value terms, the bid is estimated at around ₹12,000 crore. In comparison, Vedanta offered ₹3,800 crore upfront with deferred payments of ₹12,400 crore over five years, bringing the TPV to ₹16,726 crore.
As per Hindustan Times, one of the officials said. “Creditors have voted in favour of Adani. Now the committee of creditors will take a final decision, likely reaffirming this outcome, and submit it to the National Company Law Tribunal (NCLT),”.
Besides Adani and Vedanta, there were other bidders like Dalmia Bharat, Jindal Power, and PNC Infratech. Controlling shareholder Manoj Gaur also had submitted a last-minute bid, which was later withdrawn.
The CoC evaluated resolution plans based on a structured evaluation matrix, with Adani Enterprises emerging on top, followed by Dalmia Cement and Vedanta Ltd.
Jaiprakash Associates, a conglomerate that was once among the top three infrastructure companies in India, apart from having heavy debts, is diversified across several sectors like real estate, cement, hospitality, power, and engineering & construction. The company owes a massive amount of ₹57,185 crore. Following this, insolvency proceedings under the Corporate Insolvency Resolution Process (CIRP) were initiated in June 2024 and it is regarded as one of the largest bankruptcy cases that are still ongoing in the country.
The conglomerate is be known for such projects as Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and Jaypee International Sports City near the upcoming Jewar International Airport. Besides, the Jaypee group has commercial and industrial office spaces in Delhi-NCR, and five hotels in Delhi-NCR, Mussoorie, and Agra. Moreover, it comprises four cement plants in Madhya Pradesh and Uttar Pradesh, limestone mines on lease, and the shares of the following subsidiaries: Jaiprakash Power Ventures Ltd., Yamuna Expressway Tolling Ltd., and Jaypee Infrastructure Development Ltd.
Sources emphasized that lenders favored Adani’s plan for its faster payout structure, with payments expected within two years, unlike Vedanta’s back-ended five-year schedule. The resolution is anticipated to be finalized by the CoC and submitted to the NCLT for approval.
Image source- facebook.com
.png)