Jaiprakash Associates creditors extend bid deadline by 15 days

Time of India

a day ago

Creditors to Manoj Gaur-promoted
Jaiprakash Associates Ltd
(JAL), led by
National Asset Reconstruction Co
Ltd (
NARCL
), have decided to extend the timeline for submission of bids by another 15 days from June 9.
The decision was taken at the meeting of the committee of creditors (CoC) over the weekend after requests from some bidders for more time to submit their bids.
"Some bidders requested for more time and NARCL, which is the largest creditor, has agreed. This will be conveyed to all stakeholders on Monday," said a person familiar with the process, who did not wish to be identified.
NARCL did not immediately reply to ET's email seeking comments. The debt-laden holding company of the real estate, cement and engineering, procurement and construction (EPC) group, operating mostly in Delhi-National Capital Region, owes creditors a total of ₹57,185 crore. Interested bidders have to submit an earnest money deposit and performance security.
Lenders have also sought bank guarantees of ₹8.5 lakh against 100% margin (in the form of a lien marked fixed deposit), to cover for the mining plan for
Degarhat Devmaudaldal
leased limestone mine of JAL.
Media reports said that more than two dozen varied bidders including power and cement companies, alternative asset managers and EPC companies have expressed interest in placing formal bids. They include large companies such as
Adani Enterprises
,
Dalmia Bharat
,
Vedanta
, Patanjali Ayurveda, Naveen Jindal's Jindal Power, GMR Group, Kotak Alternate Asset Managers,
Oberoi Realty
and Torrent Power. ET could not immediately ascertain the names of the bidders.
NARCL is the single largest creditor to the company, having taken over 87% of the ₹57,185 crore debt from banks in January. Acre ARC, with 4% of the debt, and Axis Bank, with 1.60% of the debt, are the other large creditors.
JAL is among the largest companies undergoing the corporate resolution process under Insolvency and Bankruptcy Code. In terms of debt size, the JAL resolution is only dwarfed by the ₹65,000 crore owed by Videocon Industries to its creditors.