JAL insolvency – JAL insolvency: Adani, JSW, Vedanta among bidders for company’s Rs 17,300-crore assets

Top business groups such as JSW, Dalmia Bharat, Jindal Power, Vedanta, GMR, Welspun and Torrent have reportedly submitted expressions of interest (EoIs) for Jaiprakash Associates Ltd (JAL). The Adani Group is also expected to submit an EoI before the final deadline of March 25. 

According to a report in The Economic Times, another large Delhi-based industrial house is expected to submit an EoI, as is Kotak Alternate Assets. EoIs are the first stage in the bidding process for a new owner for JAL.

This comes as JAL is set to go under the hammer in a court-monitored insolvency proceeding.  A National Company Law Tribunal (NCLT) bench instructed the company’s Deloitte-backed resolution professional, Bhuvan Madan, to invite resolution plans.

The plans would also take into account the company’s assets which may be worth over $2 billion or Rs 17,300 crore, the financial daily reported. The earlier plan was to invite interest for individual assets. 

The Buddh International Circuit in Greater Noida, known for hosting Formula One races, a 2,500 acre land parcel in Noida expressway, cement plants with annual capacity of 10 million tonnes, five hotels etc are some of the company’s assets.

The company was admitted for insolvency proceedings at the NCLT on a plea by ICICI Bank last year. The court had ruled that JAL defaulted on loans obtained from creditors. 

JAL’s lenders that included ICICI Bank, State Bank of India, Punjab National Bank, IDBI Bank and 21 others assigned their loans, including principal, interest, and penalties over several years, of about Rs 48,000 crore to the National Asset Reconstruction Co Ltd (NARCL) on March 12.