Who will be the new owner of JP Associates, the Company drowning in over Rs 570000000000 debt? Adani, Jindal Vedanta, Dalmia emerge among bidders
Jaiprakash Associates Limited (JAL), part of the Jaypee Group, was admitted to the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) on June 3, 2024, by the National Company Law Tribunal (NCLT). This action was taken due to the company's default on loan repayments. The process aims to find a resolution plan to revive JAL and address its significant debt of over Rs. 57,000 crore
Under the corporate insolvency resolution process, five potential buyers have shown interest by submitting their resolution plans. However, the company has not revealed their names yet. According to some media reports, big names like the Adani Group, Vedanta, JSPL (Naveen Jindal), Dalmia Bharat, and PNC Infratech are likely in the race to take over the debt-ridden company. What's the case with JP Associates?
As per SEBI rules, the resolution professional (RP) confirmed that five applications were received before the deadline. These applications also included earnest money deposits, which show that the interested parties are serious about buying the company.
These buyers want to take control of JP Associates' assets and bring the company back on track. Potential buyers of JP Associates
A total of 25 companies have shown interest in taking over Jaiprakash Associates. Big names like Gautam Adani's Adani Enterprises, Anil Agarwal's Vedanta, and Baba Ramdev's Patanjali Ayurveda are among the top bidders aiming to acquire the company. Major Corporates: Adani Enterprises
Vedanta
Patanjali Ayurveda
Torrent Power Ltd
Dalmia Cement (Bharat) Ltd
GMR Business & Consultancy LLP
Jaypee Infratech
Jindal India Power
Jindal Power Ltd
Kotak Alternate Asset Managers Ltd
PNC Infratech
Oberoi Realty Other Interested Bidders: Authum Investment & Infrastructure
Consortium of Winro Commercial (India) & Parakh Advisors
Dickey Asset Management
India Opportunities XII Investments
J C Flowers Asset Reconstruction
Jaithari Thermal Power
Jakson Ltd
Oriental Structural Engineers
Paschim Sagar Properties
Rashmi Metaliks
Sherisha Technologies
Sigma Corporation (India) Ltd
Winchain Infrastructures
These companies are now part of the bidding process to potentially take over and revive JAL under the insolvency resolution process. The final decision will depend on which plan is approved by the lenders. What happens next?
Now, the resolution professional will carefully review all the proposals and present them to the Committee of Creditors (CoC). Based on the selected plan, steps can be taken to revive and rebuild the company. About JP Associates
Once considered one of India's top infrastructure companies, Jaiprakash Associates ran into deep trouble due to heavy debt and delays in its projects. Eventually, the company had to enter bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). How much debt does JP Group owe?
The company was taken to insolvency proceedings after the conglomerate defaulted on payment of loans. Creditors are claiming a total of a staggering Rs. 57,185 crore to banks and financial institutions.
Recently, the company shared that a group of lenders has moved their outstanding loans to the National Asset Reconstruction Company Limited (NARCL). However, the total value of the transferred loans was not disclosed.
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