JAL's lenders ask bidders to submit revised plans without conditions

Jaiprakash Associates' creditors have instructed bidders to submit revised resolution plans without conditions and provide a definitive bid offer

Lenders to Jaiprakash Associates (JAL) have asked five bidders for the bankrupt company to submit within a week revised resolution plans that don’t put conditions and give definitive numbers in their offers, people aware of the development said.

 

A committee of Creditors (CoC) separately met with the bidders — Adani Group, Dalmia Group, Vedanta Group, Jindal Steel & Power, (JSPL), and PNC Infratech — on Wednesday and Thursday to study the commercial and legal aspects of their plans. Barring Adani, almost all the other bidders have submitted offers with conditions.

 

“CoC has said that there are a lot of guardrails in the resolution plans that have been submitted. They have asked bidders to revise the plans and get back to them in a week’s time,” said a source.

 

Most bids are contingent on the outcome of a legal dispute involving JAL’s 1,000-hectare Sports City project in Greater Noida. The Allahabad High Court in March upheld a decision by the Yamuna Expressway Industrial Development Authority (Yeida) to cancel land allotment for the project. The matter is pending before the Supreme Court. 

 

The Adani Group had emerged as the frontrunner for JAL with a bid of Rs 12,250 crore, including Rs 3,500 crore in immediate cash payout. The offer includes retaining Rs 890 crore within the company post-acquisition and potentially absorbing Rs 2,600 crore from the disputed Yeida land — subject to a favourable court verdict. Sources said that despite the legal dispute, Adani’s bid is viewed by lenders as the most reliable due to its structure.

 

Dalmia Bharat has made the highest offer at Rs 14,500 crore, but that includes the full value of the contested land. If the Supreme Court rejects the land claim, the bid reduces to Rs 11,500 crore, which includes Rs 8,000 crore to be paid in cash, Rs 2,600 crore paid back from Yeida land, and the rest deferred over two-to-three years.

 

Anil Agarwal-owned Vedanta has submitted a Rs 13,500-crore bid, which is entirely conditional on winning the Yeida land case and other requirements. PNC Infratech’s Rs 10,240-crore proposal includes Rs 1,040 crore upfront, Rs 5,100 crore payable over 24 months and the rest of the amount over the next 10 years. JSPL has bid Rs 11,000 crore, offering Rs 6,500 crore upfront, and the rest conditional on Yeida settlement.

 

Creditors’ total admitted claims against JAL stand at over Rs 59,000 crore. In all 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.