The resolution process for debt-ridden Jaiprakash Associates Limited (JAL) has reached a critical juncture as the Committee of Creditors (CoC) is expected to put the final resolution plans to vote within the next two weeks, according to sources familiar with the development.
Adani Enterprises Emerges as Frontrunner
In a significant development, Adani Enterprises has emerged with the highest score in the evaluation of resolution plans for the troubled infrastructure company. The evaluation process, which assessed multiple bids based on various parameters including financial offer and implementation capability, placed the Adani Group company ahead of other contenders.
The sources revealed that the resolution professional overseeing the corporate insolvency resolution process (CIRP) has completed the evaluation of all submitted plans. The scoring system considered multiple factors crucial for the successful revival of the company, with Adani's proposal demonstrating strong technical and financial merits.
Voting Process and Timeline
The CoC, comprising various financial creditors including banks and institutional lenders, is expected to commence the voting process within two weeks. This timeline comes after extensive deliberations and evaluation of the competing resolution plans.
According to the established procedure under the Insolvency and Bankruptcy Code (IBC), the resolution plan that receives the required majority vote from creditors will be submitted to the National Company Law Tribunal (NCLT) for final approval. The voting threshold typically requires approval from creditors representing 66% of the total debt value.
The impending vote represents a crucial milestone in the resolution journey of Jaiprakash Associates, which entered corporate insolvency after accumulating substantial debts across its various business operations.
Background and Implications
Jaiprakash Associates, part of the Jaypee Group, has been undergoing resolution under the IBC framework, with the company's diverse business portfolio including cement, real estate, and infrastructure projects attracting interest from multiple potential resolution applicants.
The successful resolution of JAL holds significant importance for the Indian corporate landscape, particularly in the infrastructure sector. The outcome will not only determine the future course for the company and its stakeholders but also set important precedents for resolution processes involving large, diversified business groups.
The development comes at a time when the Indian insolvency ecosystem has been demonstrating increased efficiency in handling complex corporate resolutions, with several high-profile cases reaching conclusion in recent months.
Financial creditors are particularly keen on maximizing recovery from the resolution process, given the substantial exposure to the company. The selection of the final resolution applicant will be crucial in determining the recovery percentage for lenders who have been awaiting resolution for an extended period.
The next two weeks are expected to see intense deliberations among committee members as they evaluate the merits of each proposal before casting their votes. The outcome will ultimately shape the future trajectory of one of India's prominent infrastructure companies.
