The National Company Law Tribunal (NCLT) on Monday (June 3) admitted the insolvency plea filed by ICICI Bank and State Bank of India (SBI) against Jaiprakash Associates Ltd (JAL).
ICICI Bank initiated the insolvency proceedings in 2018, and SBI joined the process in 2022 to expedite the resolution.Jaiprakash Associates has a principal debt of ₹17,700 crore, with the total outstanding debt, including interest, amounting to ₹29,361 crore.
A consortium of 22 lenders — led by ICICI Bank, SBI and IDBI Bank — has exposure to JAL.However, the fate of Jaiprakash Associates' deal with Dalmia Cement remains unclear as the transaction has yet to be concluded.
The delay is primarily due to JAL's ongoing arbitration with UltraTech Cement over certain assets, complicating the finalization of the agreement.Back in December 2022, Dalmia Cement signed a binding framework agreement to acquire clinker, cement, and power plants from Jaiprakash Associates.
In 2023, Dalmia Bharat executed definitive agreements with Jaiprakash Associates to acquire the latter's cement assets.Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat, agreed to purchase the JP Super Cement Plant in Uttar Pradesh at an enterprise value of ₹1,500 crore, with additional costs and expenses of up to ₹190 crore.JAL, the flagship firm of the debt-ridden Jaypee Group, was part of the Reserve Bank of India's list of 26 big loan defaulters to commercial banks for initiating bankruptcy proceedings in August 2017.Shares of Jaiprakash Associates Ltd ended at ₹14.79, down by ₹0.68, or 4.40%, on the BSE.
The National Company Law Tribunal (NCLT) on Monday (June 3) admitted the insolvency plea filed by ICICI Bank and State Bank of India (SBI) against Jaiprakash Associates Ltd (JAL). ICICI Bank initiated the insolvency proceedings in 2018, and SBI joined the process in 2022 to expedite the resolution.Jaiprakash Associates has a principal debt of ₹17,700 crore, with the total outstanding debt, including interest, amounting to ₹29,361 crore. A consortium of 22 lenders — led by ICICI Bank, SBI and IDBI Bank — has exposure to JAL.However, the fate of Jaiprakash Associates' deal with Dalmia Cement remains unclear as the transaction has yet to be concluded. The delay is primarily due to JAL's ongoing arbitration with UltraTech Cement over certain assets, complicating the finalization of the agreement.Back in December 2022, Dalmia Cement signed a binding framework agreement to acquire clinker, cement, and power plants from Jaiprakash Associates. In 2023, Dalmia Bharat executed definitive agreements with Jaiprakash Associates to acquire the latter's cement assets.Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat, agreed to purchase the JP Super Cement Plant in Uttar Pradesh at an enterprise value of ₹1,500 crore, with additional costs and expenses of up to ₹190 crore.JAL, the flagship firm of the debt-ridden Jaypee Group, was part of the Reserve Bank of India's list of 26 big loan defaulters to commercial banks for initiating bankruptcy proceedings in August 2017.Shares of Jaiprakash Associates Ltd ended at ₹14.79, down by ₹0.68, or 4.40%, on the BSE.
