Jaiprakash Associates Limited (JAL), currently undergoing Corporate Insolvency Resolution Process (CIRP), has taken a significant step towards potential resolution. The Committee of Creditors (CoC) of JAL has approved the resolution plan submitted by Adani Enterprise Limited with an overwhelming majority.

Key Highlights

• Adani Enterprise's resolution plan received 93.81% votes from the CoC
• The approval surpasses the required threshold of 66% under the Insolvency and Bankruptcy Code
• The Resolution Professional has been authorized to issue a letter of intent to Adani Enterprise
• An application will be filed with the Adjudicating Authority for approval of the resolution plan

Voting Details

The e-voting for the resolution plan took place. The results of the voting are as follows:

Additional Approvals

The CoC meeting also addressed other crucial matters:

1. Approval of the list of claims as per CIRP Regulations (89.85% votes)
2. Approval of distribution methodology for Secured Financial Creditors (89.22% votes)

These approvals indicate a comprehensive approach to resolving JAL's insolvency process.

Next Steps

With the CoC's approval secured, the Resolution Professional is now authorized to:

1. Issue a letter of intent to Adani Enterprise Limited as the successful resolution applicant
2. File an application with the Adjudicating Authority for approval of the resolution plan

The move marks a crucial development in JAL's insolvency proceedings, potentially paving the way for the company's restructuring under Adani Enterprise's management, subject to final regulatory approvals.

As the process unfolds, stakeholders will be keenly watching the next steps, particularly the Adjudicating Authority's decision on the approved resolution plan.

In a significant development for the debt-ridden Jaiprakash Associates, voting is currently underway on five resolution plans submitted by major industry players. The Committee of Creditors (CoC), led by National Asset Reconstruction Company Ltd (NARCL), is evaluating proposals from Vedanta Group, Adani Group, Dalmia Bharat Group, Jindal Power, and PNC Infratech.

Voting Process and Timeline

The voting window for these resolution plans remains open until November 20, allowing creditors to assess and choose the most suitable proposal for the company's debt resolution.

Resolution Plans Overview

Here's a breakdown of the resolution plans under consideration:

Key Highlights

• Highest Bid: Vedanta Group has submitted the highest absolute offer at ₹16,000.00 crore, with ₹3,770.00 crore upfront and the remaining ₹13,000.00 crore spread over five years.
• Competitive Offer: Adani Group's proposal stands at ₹13,500.00 crore, with a higher upfront payment of ₹6,005.00 crore and ₹6,726.00 crore after two years.
• Net Present Value: In terms of net present value, Vedanta's proposal (₹12,505.00 crore) slightly edges out Adani's (₹12,050.00 crore).

Jaiprakash Associates' Financial Situation

Jaiprakash Associates is facing admitted claims of ₹57,185.00 crore from creditors. The company's assets include:

• Cement facilities
• Real estate developments
• Infrastructure projects

The outcome of this voting process will be crucial in determining the future of Jaiprakash Associates and its ability to resolve its substantial debt burden. The resolution plan selected by the creditors will play a pivotal role in the company's potential turnaround and the recovery of dues for the lenders involved.

As the voting process continues, stakeholders will be closely watching to see which proposal gains favor with the Committee of Creditors and how it might impact the company's future operations and financial health.