Creditors of Jaiprakash Associates Ltd., commonly known as Jaypee Group, have unanimously backed Adani Enterprises Ltd.’s ₹13,500-crore takeover proposal under the insolvency process, preferring it over a higher bid by Vedanta Ltd.
They opted for Adani’s bid over Vedanta’s higher ₹17,000-crore bid because it included larger upfront payments preferred by stakeholders, two officials aware of the transaction said on the condition of anonymity as the matter is private.
Vedanta’s bid entailed a five-year payment timeline, significantly longer than the 1.5-2 years proposed by Adani, swaying creditor preferences, one of the officials said. “Creditors have voted in favour of Adani. Now the committee of creditors will take a final decision, likely reaffirming this outcome, and submit it to the National Company Law Tribunal (NCLT),” one of them said.
Emails sent to Adani, Vedanta and NARCL were not immediately answered.
Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power and PNC Infratech. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, which was later withdrawn, said one of the officials said.
Jaiprakash Associates, once one of India’s largest infrastructure conglomerates, owes creditors ₹55,000 crore. The proceedings under India’s Insolvency and Bankruptcy Code were initiated last June, making it one of the largest ongoing bankruptcy cases in the country.
The National Asset Reconstruction Co. Ltd., which acquired Jaiprakash’s loans from a lender consortium led by State Bank of India, leads the list of claimants in the ongoing resolution process.