Adani Faces First Challenge to ₹14,543-Crore Resolution Plan for Jaiprakash Associates

National Company Law Appellate Tribunal (NCLAT) Challenge to Adani Enterprises' Resolution Plan

Key Figures:

• ₹14,543 crore: Adani Enterprises' resolution plan for Jaiprakash Associates Ltd (JAL)
• ₹1 crore: Claim made by Velocity Enterprises
• ₹5.44 trillion: Total admitted claims for JAL
• ₹15,343 crore: Realizable value offered by Adani Enterprises' plan
• ₹6,000 crore: Upfront payment offered by Adani Enterprises
• ₹12,505 crore: Offer made by Vedanta Ltd
• 93%: Votes secured by Adani Enterprises' plan from financial creditors
• 2.8%: Recovery offered by Adani Enterprises' plan for creditors

Jaiprakash Associates Ltd (JAL) Resolution Plan

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The National Company Law Tribunal (NCLT) had approved Adani Enterprises' ₹14,543-crore resolution plan for JAL on 17 March, rejecting objections from rival bidder Vedanta Ltd. The plan secured about 93% votes from financial creditors, exceeding the 66% threshold under the Insolvency and Bankruptcy Code (IBC). National Asset Reconstruction Co. Ltd (NARCL), which holds over 85% voting share, led the support.

Adani Enterprises' Offer

Adani Enterprises' bid was preferred for its payment structure, offering around ₹6,000 crore upfront and the remaining within two years. In comparison, Vedanta's ₹12,505-crore offer proposed payments over five years. The plan offers a realizable value of about ₹15,343 crore, implying a recovery of roughly 2.8% for creditors.

Velocity Enterprises' Challenge

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Velocity Enterprises, a Bhopal, Madhya Pradesh-based contractor, has filed a challenge to the resolution plan in the NCLAT. The company claims it was not given a fair opportunity to present its claims, with the NCLT rejecting its claim of over ₹1 crore arising from contractual work on 17 March. The NCLAT will hear the challenge on 20 March. Several creditors, whose claims were rejected by the NCLT, are likely to join the challenge in the coming days.