Adani Enterprises’s resolution plan for Jaiprakash Associates has moved into the implementation stage, with the debt-ridden company constituting a monitoring committee to oversee deals worth nearly ₹5,700 crore involving the transfer of key assets to Adani Group entities.
The transactions include nearly ₹2,994 crore for the sale of Jaiprakash Associates’ 24% stake in JPVL to Adani Power, ₹1,200 crore for the transfer of its 180 MW Churk thermal power plant and related assets to Adani Power, and ₹1,500 crore for the sale of Jaypee Fertilizers & Industries — the holding company of Kanpur Fertilizers and Chemicals Ltd — to Adani Ports and Special Economic Zone.
Also Read: Adani Power inks deals to buy Jaiprakash Power stake, Churk assets for over Rs 4,193 crore total
The monitoring committee will supervise implementation of the approved resolution plan cleared earlier by the National Company Law Tribunal’s Allahabad bench and manage the affairs of the company during the transition period, Jaiprakash Associates said in aexchange filing.
As part of the implementation process, the company has entered into definitive agreements for the transfer of several power and fertilizer-related assets to Adani Group firms.
Apart from the Churk thermal power plant, Adani Power will also acquire related assets including an 11.49% stake held by Jaiprakash Associates in Prayagraj Power Generation Company Ltd.
The agreements were executed on the night of May 20 after authorisation by the monitoring committee during its meeting held on May 18.
According to the filing, the approved resolution plan allows Adani Enterprises to implement the plan through subsidiaries, affiliated entities or special purpose vehicles depending on the nature of the assets involved.
The filing added that “given the varied and complex nature of the business activities of the Corporate Debtor, certain businesses/ assets may be better served if their ownership, management and operations vest with other businesses and entities engaged in the relevant sectors, including various Adani Entities.”
Jaiprakash Associates said the transactions are being undertaken as part of the implementation of the approved insolvency resolution plan under the Insolvency and Bankruptcy Code and are not related-party transactions.
