Lenders likely to resolve JAL insolvency through a challenge mode

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

The lenders of Jaiprakash Associates Limited (JAL) are likely to opt to invite all the resolution applicants to bid for the company in a challenge mode, placing their offers real time to match the highest bid, according to people in the know.

 

“The nuances of the challenge mode are yet to be decided as there is no legally prescribed format for a challenge. This would entail timelines, the base plan. It is expected to be conducted like a secret auction where each company would submit their bid in isolation,” said a source close to the development.

 

The five resolution applicants