National Company Law Tribunal Approves Adani Group's ₹15,000 Crore Restructuring Plan for Jaiprakash Associates

Adani Enterprises Secures Approval for ₹15,000-Crore Resolution Plan

Jaiprakash Associates Ltd (JAL), a bankrupt company, has seen its ₹15,000-crore resolution plan approved by the Allahabad bench of the National Company Law Tribunal (NCLT), with Adani Enterprises emerging as the successful bidder. The plan was challenged by Anil Agarwal-led Vedanta Ltd, which had alleged an unfair and opaque process.

Key Details:

• ₹15,000 crore resolution plan submitted by Adani Enterprises
• 93% votes secured from financial creditors, exceeding the required 66% under the Insolvency and Bankruptcy Code
• ₹6,000 crore upfront payment and the rest within two years, as per the payment structure offered by Adani Enterprises
• ₹12,505 crore offer by Vedanta, proposing payments over five years, on a net present value basis
• ₹15,343 crore realizable value offered by Adani's plan, implying a 2.8% recovery for creditors against total admitted claims of ₹5.44 trillion

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Impact:

• Adani Enterprises will gain access to JAL's key assets, including 3,985 acres in Noida and Greater Noida, 6.5 million tonnes cement capacity in Uttar Pradesh and Madhya Pradesh, and a 24% stake in Jaiprakash Power Ventures Ltd
• The acquisition will support the Adani Group's cement expansion, with plans to increase production from 109 million tonnes per annum to 155 million tonnes by FY28
• JAL holds large real estate assets, including Jaypee Greens, Wishtown, and Jaypee International Sports City, which will be acquired by Adani Enterprises

Next Steps:

• The resolution plan becomes binding, and control shifts to Adani Enterprises, with payments to creditors beginning as per the timeline set by the monitoring committee
• Dissenting parties like Vedanta can challenge the order before the National Company Law Appellate Tribunal (NCLAT), potentially delaying the plan's implementation

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