Jaiprakash Associates: Creditors Grant 15-Day Extension for Bids

As per news reports, Creditors of Jaiprakash Associates Ltd (JAL), led by the National Asset Reconstruction Company Ltd (NARCL), have agreed to extend the bid submission deadline by 15 days from 9 June. This decision was made during a recent committee of creditors (CoC) meeting, following requests from several potential bidders seeking additional time. 

Financial Position and Bidding Requirements

Jaiprakash Associates, a debt-heavy conglomerate involved in real estate, cement, and EPC projects, primarily operating in the Delhi-NCR region, currently owes creditors ₹57,185 crore. To qualify for bidding, interested parties must provide an earnest money deposit along with performance security. 

Additionally, lenders are demanding bank guarantees worth ₹8.5 lakh backed by a 100% margin (through lien-marked fixed deposits) to secure the mining plan for the Degarhat Devmaudaldal limestone lease.

Potential Bidders and Creditor Composition

Over 2 dozen potential bidders have shown interest in acquiring JAL’s assets, including notable names from the power, cement, EPC, and investment sectors. 

Entities such as Adani Enterprises, Vedanta, Dalmia Bharat, Jindal Power, GMR Group, Patanjali Ayurveda, Kotak Alternate Asset Managers, Oberoi Realty, and Torrent Power are reportedly among those exploring bids, although their participation could not be independently verified. 

NARCL holds the majority share of JAL's debt, having acquired over 87% in January. Other significant creditors include Acre ARC (4%) and Axis Bank (1.6%). With ₹57,185 crore in debt, JAL stands as one of the largest insolvency cases in India, second only to Videocon Industries, which owes around ₹65,000 crore.

Read More: YEIDA to Issue Fresh Leases in Jaiprakash Associates’ Sports City Project After Court Order!

Conclusion 

The extension of the bid deadline reflects strong interest from a wide range of bidders, indicating the potential for a competitive resolution process. With NARCL leading the effort and several major players in the fray, the outcome of JAL’s insolvency proceedings could significantly impact the real estate, cement, and infrastructure sectors.

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