Creditors of Jaiprakash Associates unanimously backed Adani Enterprises' Rs 13,500-crore takeover proposal for the bankrupt infrastructure group, preferring it over Vedanta's bid, two officials familiar with the matter said.
Creditors, mostly banks, opted for Adani's bid over Vedanta's higher Rs 17,000-crore offer because it included larger upfront payments preferred by stakeholders, the officials said on Wednesday, declining to be named as the matter is private.
Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power and PNC Infratech. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, which was later withdrawn, said one of the officials said.
Jaiprakash Associates, once one of India's largest infrastructure conglomerates, owes creditors Rs 55,000 crore. Insolvency proceedings under India's bankruptcy laws were initiated last June, making it one of the largest ongoing bankruptcy cases in the country.
Vedanta's bid entailed a five-year payment timeline, significantly longer than the 1.5-2 years proposed by Adani, swaying creditor preferences, one of the officials said.
"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)," one of them added.
The National Asset Reconstruction Company (NARCL), which acquired Jaiprakash's loans from a lender consortium led by State Bank of India , leads the list of claimants in the ongoing resolution process.
Emails sent to Adani Enterprises, Vedanta and NARCL were not immediately answered.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
