JAL Creditors Choose Adani Offer Over Higher Vedanta Bid Due to Upfront Payment Benefits

Creditors of Jaiprakash Associates Limited (JAL) have opted for Adani Enterprises’ bid in its insolvency resolution process, favouring higher upfront payments over a slightly higher overall offer from Vedanta, as per the news reports. 

Adani’s Upfront Payment Clinches the Deal 

Despite Vedanta offering ₹17,000 crore during the electronic auction conducted in September, JAL’s creditors unanimously selected Adani Enterprises as the winning bidder. As per the news reports, Adani’s proposal included significantly higher upfront payments, which outweighed the difference in overall bid value and net present value that was lower by around ₹500 crore. 

The committee of creditors scored the bids on a 100-point scale and granted the highest score to Adani Enterprises. Although Vedanta had emerged as the top bidder in government records, the decision was driven by pragmatic financial recovery considerations. 

JAL, with outstanding debt obligations of ₹55,000 crore, was admitted into insolvency in June 2024 and is currently managed by Bhuvan Madan of Deloitte. 

Read More: NCLT Reserves Verdict on Vedanta Demerger After Government Raises ₹16,700 Crore Claim! 

Competing Bidders and Earlier Offers 

Initially, 5 bidders, including Dalmia Bharat, Jindal Power, and PNC Infratech, submitted resolution plans. Dalmia Bharat had emerged on top, but its bid was conditional, and it later opted out of the auction.  

JAL’s Asset Profile and Debt 

JAL, the flagship of Jaypee Group, has assets across cement, power, engineering, hospitality, and real estate, notably including a 1,000-hectare sports city project in Greater Noida. These extensive holdings offer recovery potential but also carry significant risk due to high leverage and stalled operations. 

Conclusion 

JAL's creditors have opted for Adani's resolution plan due to better prepayment structure, despite a higher total bid from Vedanta. The legal outcome remains uncertain, but the decision was based on lender priorities around financial recoverability and timing. 

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