Key Takeaways
- Adani Enterprises wins creditor approval for $1.53 billion Jaiprakash Associates takeover
- Creditors preferred Adani’s faster payment plan over Vedanta’s higher bid
- This marks one of India’s largest ongoing bankruptcy resolutions
India’s Jaiprakash Associates creditors have unanimously approved Adani Enterprises’ 135-billion-rupee ($1.53 billion) takeover bid, selecting it over a higher offer from Vedanta. The decision came after creditors, primarily Indian banks, favored Adani’s proposal due to its larger upfront payments and shorter 1.5-2 year payment timeline.
Bidding War and Creditor Preference
While Vedanta had submitted a higher 170-billion-rupee bid, its five-year payment structure proved less attractive to stakeholders. “Creditors have voted in favor of Adani. Now the committee of creditors will take a final decision, likely reaffirming this outcome, and submit it to the National Company Law Tribunal (NCLT),” said one official familiar with the matter.
Other companies in the bidding process included Dalmia Bharat, Jindal Power, and PNC Infratech. Controlling shareholder Manoj Gaur also submitted a last-minute bid that was later withdrawn.
Background of the Bankruptcy Case
Jaiprakash Associates, once among India’s largest infrastructure conglomerates, owes creditors approximately 550 billion rupees. The company entered insolvency proceedings under India’s bankruptcy laws in June last year, making this one of the country’s most significant ongoing bankruptcy cases.
The National Asset Reconstruction Company (NARCL), which acquired Jaiprakash’s loans from a consortium led by State Bank of India, leads the list of claimants in the resolution process. Emails seeking comments from Adani Enterprises, Vedanta, and NARCL were not immediately answered.
($1 = 88.5350 Indian rupees)
