Adani pays ₹6,000cr to lenders of Jaiprakash Associates
What's the story
Adani Group has paid ₹6,000 crore to the lenders of Jaiprakash Associates. The payment is the first installment of a larger ₹14,535 crore resolution plan. It comes after judicial clearance and the dismissal of a competing bid from Vedanta Group by the National Company Law Appellate Tribunal (NCLAT). This marks a major milestone in one of India's longest-running insolvency cases.
Debt distribution
Major lenders involved in the case
The National Asset Reconstruction Company (NARCL) holds 85.43% of the admitted debt of Jaiprakash Associates. Other lenders involved in this case include Asset Care & Reconstruction Company (ACRE), Axis Bank, The Bank of New York Mellon, State Bank of India, and Asset Reconstruction Company (India) (ARCIL). The insolvency proceedings against Jaiprakash Associates have been going on for a few years now.
Plan approval
Timeline of events
Jaiprakash Associates officially entered the Corporate Insolvency Resolution Process (CIRP) in June 2024. The Allahabad bench of the National Company Law Tribunal approved Adani Enterprises's resolution plan on March 17, 2026. As per this approved plan, ₹6,000 crore was to be paid within 90 days of approval date for repayment of secured financial creditors. Another ₹6,026 crore is due at the end of two years from approval date.
Additional payments
Additional benefits for secured lenders
Along with the cash payment, secured lenders will also get ₹1,500 crore in non-convertible debentures (NCDs) with a put option. This will let creditors redeem their holdings at face value between 12-21 months from plan approval. Adani also has a call option to redeem these NCDs at face value between 21-24 months from approval date. The securities are backed by guarantees from listed Adani companies.
Financial recovery
Breakdown of the resolution plan
The total bid value under this resolution plan is ₹14,535 crore. However, the recovery for financial creditors is expected to be around ₹13,500 crore. The remaining amount will go toward insolvency resolution process costs and payments to operational creditors and other statutory dues.