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Adani Wins Jaiprakash Associates Bid Over Vedanta
19 Nov
Summary
- Adani Enterprises secured Jaiprakash Associates with creditors' vote.
- Vedanta's higher bid was bypassed for Adani's upfront payment offer.
- Jaiprakash Associates owes creditors ₹55,000 crore.
Creditors have unanimously favored Adani Enterprises' bid for the distressed Jaiprakash Associates Limited (JAL), a decision that saw them bypass Vedanta's higher financial offer. While Vedanta had initially emerged as the highest bidder with a ₹17,000 crore proposal, the lenders opted for Adani's plan due to its superior upfront payment terms, despite a potentially lower net present value.
The resolution professional for JAL, Bhuvan Madan, has been overseeing the insolvency proceedings since June of the previous year. The company's total debt stands at a substantial ₹55,000 crore. The committee of creditors had previously assigned the highest score to Adani Enterprises' bid, though some lenders have reportedly questioned the scoring mechanism.
This decision by the lenders may face legal scrutiny, as Adani was not the highest bidder. However, courts typically uphold the commercial judgment of creditors in resolving such stressed accounts. Originally, five entities submitted resolution plans, including Dalmia Bharat and Jindal Power, but only Adani and Vedanta proceeded to the final auction.
