Jaiprakash Associates Ltd
Adani’s Resolution Plan Approved for Jaiprakash Associates 🏗️✅
- The resolution plan for Jaiprakash Associates Ltd. has been approved by the Committee of Creditors (CoC) with 93.81% voting share.
- The resolution plan provides for a waiver of claims, penalties, and fines against the Corporate Debtor and Resolution Applicant for 36 months from the Effective Date.
- Liabilities of the JAL Group, joint ventures, and associates for acts prior to the Effective Date are waived, with a 3-year period to remedy non-compliances.
- Contracts between subsidiaries and promoters are terminated upon plan implementation, with no termination payments required.
- The resolution plan extinguishes liabilities towards government authorities for non-compliance prior to the Effective Date, including taxes, cesses, and penalties.
- The fair value of the Corporate Debtor is Rs. 19,234 crores, liquidation value is Rs. 15,799 crores, and the realizable amount under the plan is Rs. 14,084.20 crores.
- The plan achieves 73% of fair value and 89% of liquidation value in terms of realizable amount.
- Adani Enterprises Ltd. is the successful resolution applicant, providing a performance bank guarantee of INR 5,000,000,000.
- The resolution plan complies with all provisions of the Insolvency and Bankruptcy Code, 2016, and related regulations.
- All applications challenging the resolution plan have been dismissed or disposed of by the NCLT.
- Resolution Professional filed a Special Leave Petition (SLP No. 949712025) in Supreme Court against Allahabad High Court's judgment dated March 10, 2025.
- Supreme Court issued notice on stay and permitted parties to file counter/rejoinder affidavits; matter remains sub-judice.
- Supreme Court allowed authorities, including YEIDA, to proceed with High Court directions but barred implementation without its permission.
- YEIDA filed a claim of Rs. 4,790.86 crore; Resolution Professional admitted Rs. 1,067.87 crore as secured debt.
- Resolution Plan proposes payment of Rs. 1,067 crore to YEIDA from Resolution Applicant's own sources, subject to Supreme Court outcome.
- All other YEIDA claims, filed or not, will be extinguished upon plan approval, except the admitted amount.
- Homebuyers' admitted debt is Rs. 2,074.85 crore; Resolution Applicant will deliver units within specified timelines (e.g., 1-3 years based on project completion).
- Homebuyers have exit option: refund of paid amount in six quarterly instalments, minus penalties, with interest as per RERA/Allahabad HC judgment.
- 15 PUFE applications filed under IBC sections 43, 45, 49, 66; CoC to handle proceedings at secured creditors' cost, with recoveries passed to them.
- Resolution Applicant seeks reliefs: restraint on detrimental actions, continuation of licenses/approvals for 24 months post-effective date, and exemptions for CSR/environmental compliance delays.
- Adani Enterprises Limited's resolution plan was approved by the Committee of Creditors (CoC) with 93.81% voting share in favor.
- The resolution plan includes a total financial proposal of approximately INR 153,434 crore, covering payments to creditors, CIRP costs, and additional fund infusion.
- Financial creditors will receive INR 139,820 crore (35% of admitted claims), with secured creditors getting 26% and unsecured creditors 9% of their admitted amounts.
- Operational creditors, employees, and workmen will be paid INR 81 crore, INR 21 crore, and INR 20 crore respectively, representing 6%, 29%, and 29% of their admitted claims.
- Adani will infuse INR 800 crore for working capital and capital expenditure within 180 days of plan approval.
- The resolution plan was evaluated based on quantitative and qualitative parameters, with Adani scoring highest among five bidders at 89.76 out of 100.
- A performance bank guarantee of INR 500 crore was submitted by Adani, valid until November 2027.
- The Corporate Insolvency Resolution Process (CIRP) commenced on June 3, 2024, with multiple extensions granted, and the resolution plan was approved on November 18, 2025.
- Vedanta Limited's addendum to its resolution plan was rejected by the CoC for violating process guidelines, and it was not considered.
- Adani's eligibility under Section 29A was confirmed after review, with no material ineligibility found, despite observations related to Dighi Port Limited.
- NCLT Allahabad approved Adani Enterprises Limited's resolution plan for Jaiprakash Associates Limited (JAL) on March 17, 2026.
- JAL's consolidated net worth was negative INR 69,037.4 crores as of March 31, 2025.
- Adani Enterprises will infuse up to INR 800 crores for working capital and operational improvements within 180 days of plan approval.
- All pre-CIRP share capital, including equity and preference shares, will be canceled for zero consideration.
- Post-implementation, Adani Enterprises will hold 100% of JAL's share capital, delisting the company from stock exchanges.
- Total financial proposal includes INR 6,005 crores upfront payment and INR 6,026.5 crores within 2 years, plus NCDs with call/put options.
- Claims settlement includes INR 10 crores for workmen/employees, INR 1,067 crores for YEIDA, and exit options for homebuyers.
- No consideration is offered to existing shareholders due to insufficient liquidation value.
- The resolution plan was approved by the CoC with 93.81% voting share on November 7, 2025.
- Implementation must be completed within 90 days from the plan approval date (effective date).