Gautam Adani, Anil Aggarwal, Baba Ramdev in race to buy insolvent company named as…, it deals in hotels, cement and…

Jaypee Associates Limited (JAL) is in news as 25 corporate giants want to acquire it. The company is debt-ridden, and most of its projects are halted. 26 companies had placed bids for its acquisition, but one bid among them by Asset Reconstruction Company India Limited (ARCIL) was rejected.

Who’s In Race?

Adani Enterprises, Vedanta (Anil Agarwal), Patanjali Ayurved (Baba Ramdev), Dalmia Bharat and Jindal Power are big corporates who are bidders among the list. Apart from them other big businesses like GMR Group, Oberoi Realty, Torrent Power, Kotak Alternate Asset Managers, JP Infratech, and Authum Investment are also in the race.

Insolvency Case on JAL

This acquisition is considered one of the largest corporate insolvency proceedings in India. Jaypee Associates was handling business in different sectors like infrastructure, real estate, hospitality, and non-operational cement plants. However, due to its massive debt and delayed projects, the company faced several financial challenges.

Jaypee Associates owes more than Rs 57,000 crore to creditors. Among the largest creditors are State Bank of India (SBI) with debt of  Rs 15,000 crore and ICICI Bank debt of 9,204 crore.

The company owns assets like Hotels in Agra, Noida, Delhi, and Mussoorie, Cement plants in Churk, Rewa, Sadwa Khurd, and Chunar, Land near the Yamuna Expressway Industrial Development Area, close to Noida.

Creditors think that selling these assets will help them to recover a portion of their outstanding dues. ICICI Bank had filed a petition against JAL in 2018, seeking resolution for the unpaid loans.

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