The Adani Group has secured the vital approval of the Committee of Creditors (CoC) of the debt-ridden Jaiprakash Associates Limited (JAL) for its acquisition proposal.
📌 Key Details of the Decision
Total Proposal Value (TPV): Adani's bid is valued at ₹14,535 crore.
Voting Support: The Adani Group received an overwhelming 89% of the votes from the creditors, successfully outbidding rivals like Vedanta Ltd. and Dalmia Cement (Bharat).
Reason for Preference: Lenders chose the Adani plan primarily because it offered a significantly higher upfront payment and a much shorter payout timeline compared to the competing bids.
Adani's Offer: Includes ₹6,005 crore upfront and the remaining amount payable within approximately two years.
Vedanta's Offer: Although the total plan value (TPV) was higher at around ₹16,726 crore, it involved an upfront payment of only ₹3,800 crore and the rest in deferred payments spread over five years, which the lenders found less favorable.
Current Debt: Jaiprakash Associates owes creditors over ₹55,000 crore, making it one of the largest ongoing bankruptcy cases in the country.
🏛️ Next Steps
With the CoC's approval, Adani Enterprises Limited (AEL) has received the Letter of Intent (LOI) from the Resolution Professional (RP). The implementation of the resolution plan is now subject to requisite approvals from the National Company Law Tribunal (NCLT) and other regulatory authorities.