Lenders ask bidders to sweeten offers for debt-laden Jaiprakash Associates

CoC in final phase of assessing resolution plans from 5 shortlisted bidders

The Committee of Creditors (CoC) of Jaiprakash Associates Ltd (JAL) is in the final phase of assessing resolution plans of five shortlisted bidders, with lenders prioritising upfront cash and urging bidders to sweeten their offers. In meetings held on Monday between the lenders and the bidders, the former discussed the structure and funding of the proposed resolution plans.

 

All bids, however, remain contingent on the outcome of a key legal case surrounding Jaiprakash’s 1,000-hectare Sports City project in Greater Noida. 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. 

The Adani group has emerged as the frontrunner with a ₹12,250 crore bid, including ₹3,500 crore in immediate cash payout. Adani’s offer includes retaining ₹890 crore within the company post-acquisition and potentially absorbing ₹2,600 crore from the disputed Yeida land — subject to a favourable court verdict. Despite the legal overhang, sources say Adani’s proposal is currently viewed by lenders as the most reliable due to its structure. 

Dalmia Bharat has made the highest offer at ₹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 ₹11,500 crore, which includes ₹8,000 crore to be paid in cash, ₹2,600 crore paid back from Yeida land, and the rest deferred over two-to-three years. 

Anil Agarwal-owned Vedanta group has submitted a ₹13,500 crore bid, entirely conditional on winning the Yeida land case, among several other conditionalities. PNC Infratech’s ₹10,240 crore proposal includes ₹1,040 crore upfront, with ₹5,100 crore payable over 24 months, and remaining over the next 10 years. Jindal Power (JPL) has bid ₹11,000 crore, offering ₹6,500 crore upfront, and the rest conditional on Yeida settlement. 

The Adani group, Dalmia, Vedanta, JPL, and PNC Infratech did not comment on the ongoing negotiations.

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

The CoC will finalise the winning bid based on overall proposal value, upfront cash offered, and resolution structure. There will be voting on each resolution plan by the members of the CoC. 

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.

As of 2023-24 (FY24), Jaiprakash Associates reported total revenues of ₹6,568 crore, and asset holdings worth ₹36,140 crore — of which real estate accounted for ₹19,119 crore. The group also has interests in cement, expressways, fertilisers, aviation, and agriculture.