Bidders file fresh JAL plans as CoC weighs challenge round decision

Bidders have revised plans for Jaiprakash Associates after lender talks, but key legal hurdles remain as CoC weighs whether to renegotiate or hold a challenge round

The five resolution applicants for insolvent firm Jaiprakash Associates Limited (JAL) have submitted revised plans after a round of negotiations with lenders, who asked them to do away with conditionalities in their proposals, according to people in the know.

 

The committee of creditors (CoC) is likely to decide whether to discuss the commercials of the plans again with the bidders or go for a challenge round where all applicants would bid for the company in real time on Monday, sources said.

 

The revised plans, however, sources said, are only slightly different from the original for most bidders with certain conditionalities still attached. 

 

Meanwhile, PNC Infratech became the third bidder to apply for the approval of Competition Commission of India for its proposal to take over JAL, after Adani Group and Dalmia Bharat. The CCI had approved the acquisition plan for Dalmia Bharat on August 5. The plans of Adani group and PNC Infra are under the review by the antitrust regulator.

 

The CoC separately met with the bidders — Adani Group, Dalmia Group, Vedanta Group, Jindal Power (JPL), and PNC Infratech- to study the commercial and legal aspects of their plans.

 

Most bids remain contingent on the outcome of a key legal case surrounding Jaiprakash’s 1,000-hectare Sports City project in Greater Noida. One of the bidders Jaypee Infratech, now owned by Mumbai-based Suraksha group, is planning to move the court to appeal against the rejection of its offer by the resolution professional (RP). The RP had rejected its offer citing lack of adequate earnest deposit money.

 

In March, the Allahabad High Court had upheld a decision by the Yamuna Expressway Industrial Development Authority (Yeida) to cancel the land allotment. The matter is now pending before the Supreme Court. 

 

Creditors’ total admitted claims against JAL stand at over ₹59,000 crore. In all the offers, the banks will end up taking a haircut of up to 79 per cent of their claims.

 

The company entered insolvency on June 3, 2024. Its asset base spans cement, real estate, infrastructure, hospitality, and marquee developments like Jaypee Greens, Wish Town, and the International Sports City near the upcoming Jewar Airport.