JAL Faces Insolvency; CCI Approves Acquisitions by Jindal Power, Adani Group
Jaiprakash Associates Ltd (JAL) has faced insolvency, with the National Asset Reconstruction Company Ltd (NARCL) holding the largest claims on its debt. The Competition Commission of India (CCI) has given approvals for several companies, including Jindal Power, PNC Infratech, Adani Group, and Dalmia Bharat, to acquire JAL.
JAL, admitted into the Corporate Insolvency Resolution Process (CIRP) in 2024, has defaulted on loan payments amounting to ₹57,185 crore. The company owns four non-operational cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh. Its major real estate projects include Jaypee Greens in Greater Noida and Jaypee International Sports City near Jewar Airport. JAL also has investments in subsidiaries such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.
CCI approval is mandatory for submitting a resolution plan under the Insolvency and Bankruptcy Code (IBC). Vedanta Group and Jindal Power have sought CCI's nod for their respective JAL resolution plans. NARCL, having acquired stressed JAL loans from a consortium of lenders, leads the list of claimants.
With CCI approvals in place, interested parties can now submit resolution plans for JAL. NARCL, as the lead claimant, will play a crucial role in the insolvency process. The fate of JAL's assets, including its cement plants, real estate projects, and subsidiaries, will be determined through the resolution process.
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