The long financial struggle of Jaiprakash Associates has moved toward a solution as its lenders have decided that the Adani Group should take control of the company. The firm has been under heavy debt for years and has been stuck in the insolvency process.

Adani Enterprises said that it received a Letter of Intent from the Resolution Professional on November nineteen in the afternoon. This letter confirms that the lenders have selected the Adani Group’s plan. The plan still needs approval from the National Company Law Tribunal in Allahabad and from a few other authorities. Once these permissions are given the Adani Group can carry out the resolution plan through Adani Enterprises or any other company in the group or even through a new company created only for this purpose.

Although the final amount has not been publicly stated yet many reports say that the deal is close to one point five billion dollars. Jaiprakash Associates has businesses in cement construction power real estate hotels and fertilizers.

Several companies had earlier shown interest in taking over Jaiprakash Associates. The list included Vedanta Dalmia Bharat PNC Infratech Jindal Power and the Adani Group. In an online auction Vedanta had offered around seventeen thousand crore rupees which was the highest bid. Even after that the lenders selected the Adani Group because it promised a larger upfront payment and lenders felt that Adani’s plan was safer and more dependable. A scoring sheet prepared for lenders also showed Adani with the top score although a few banks questioned how the scores were prepared.

The company owes nearly fifty five thousand crore rupees to banks and was placed into insolvency in June twenty twenty four. The case is being managed by Bhuvan Madan from Deloitte. The National Asset Reconstruction Company is the biggest lender involved.

There is a possibility that the lenders decision could be challenged in court because the selected plan is not the highest bid. But courts in earlier cases have usually supported the decision of lenders if the procedure was transparent.

Before the auction ended the company’s promoter Manoj Gaur had tried to save the company by offering around eighteen thousand crore rupees to settle the case. Lenders were not convinced because they were unsure of the promoter’s financial capacity.

Jaiprakash Associates was once one of the most active companies in the infrastructure sector. It has built many important projects in sports engineering power cement and real estate. One of its most well known projects is the Sports City in Greater Noida which covers nearly one thousand hectares.