Adani Enterprise has received creditors’ nod for the takeover of debt-ridden Jaiprakash Associates, said a Reuters report. The Adani Group company proposed a bid of 13,500 crore, about $1.53 billion.
The report further stated that Adani Enterprises outbid Vedanta for Jaiprakash Associates, despite the latter’s higher bid of Rs 17,000 crore. The creditors of Jaiprakash Associates, mostly Indian banks, preferred Adani Enterprises over Vedanta as it offered a larger upfront payment, the report added.
Reuters reported that Adani Enterprises’ bid proposed a 1.5 to 2-year timeline for the payment, while Vedanta’s proposal entailed a five-year payment timeline. The lower payment timeline swayed the stakeholders and creditors.
“Creditors have voted in favor 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),” a source told Reuters.
Other bidders for Jayprakash Associates
Besides Adani and Vedanta, Dalmia Bharat, Jindal Power and PNC Infratech also participated in bidding for Jayprakash Associates. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, which was later withdrawn, according to the report.
Jaiprakash Associates, which was once one of India’s largest infrastructure conglomerates, now owes Rs 55,000 crore to creditors. The company’s insolvency proceedings under India’s bankruptcy laws were initiated last June, making it one of the largest ongoing bankruptcy cases in the country.
The National Asset Reconstruction Company (NARCL), which acquired Jaiprakash’s loans from a consortium of lenders led by the State Bank of India, leads the list of claimants in the ongoing resolution process.
