Jaiprakash Associates Limited (JAL), a major player in the infrastructure and real estate sectors, has disclosed its substantial outstanding debt of INR 55,371.21 crore. This revelation comes as the company continues to navigate through its Corporate Insolvency Resolution Process (CIRP).

Debt Disclosure and Insolvency Process

JAL's disclosure, made in compliance with SEBI regulations, sheds light on the company's financial obligations to various banks and financial institutions. The list of lenders includes prominent names such as:

• National Asset Reconstruction Company Limited (NARCL)
• Axis Bank Limited
• State Bank of India (SBI)
• Bank of Maharashtra
• Canara Bank
• ICICI Bank Limited
• Punjab National Bank

The company's current financial state has led to its entry into the insolvency process. Mr. Bhuvan Madan has been appointed as the Resolution Professional to oversee the CIRP, confirmed by the Committee of Creditors (CoC) with an 87.72% voting share.

Financial Position Analysis

To better understand JAL's financial situation, let's look at key figures from its latest balance sheet:

The balance sheet reveals a concerning trend, with the company's total assets decreasing by 4.26% year-over-year, while its total liabilities have increased. Notably, the shareholders' capital has turned significantly negative, indicating severe financial distress.

Implications and Next Steps

As JAL progresses through the insolvency process, the focus may be on:

1. Claim Verification: Lenders are expected to file and verify their claims against the company.
2. Resolution Plan: The Resolution Professional and CoC might work towards formulating a viable resolution plan.
3. Debt Restructuring: Potential restructuring of the INR 55,371.21 crore debt to address the company's financial situation.

The outcome of this process could be crucial not only for JAL but also for its stakeholders, including employees, creditors, and the infrastructure sector at large. As the insolvency proceedings continue, developments in JAL's case may be closely monitored for their potential broader implications on the infrastructure and real estate sectors in India.

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.