The Adani Group has completed the first tranche payment of ₹6,000 crore to the lenders of Jaiprakash Associates, a significant milestone in the ongoing resolution of the debt-laden company. This initial payment is part of a larger ₹14,535 crore resolution plan aimed at addressing one of India’s most protracted insolvency cases.
The substantial payment, sourced from Adani’s internal accruals, was made on Thursday. It follows the finalization of legal procedures after the National Company Law Appellate Tribunal (NCLAT) dismissed a challenge brought by rival bidder Vedanta Group, clearing the path for the approved resolution plan's implementation.
Relief for Creditors After Prolonged Delay
This development brings long-awaited relief to creditors who have been seeking recoveries for several years. Sources close to the matter stated it was a "major day" for lenders, acknowledging the significant amount received after a considerable delay in the insolvency process.
Jaiprakash Associates formally entered the Corporate Insolvency Resolution Process (CIRP) in June 2024. The Allahabad bench of the National Company Law Tribunal (NCLT) had previously approved Adani Enterprises’ bid on March 17, 2026, setting the stage for this payment.
Resolution Plan Details and Future Payments
Under the terms of the approved resolution structure, the ₹6,000 crore payment was mandated for distribution to secured financial creditors within 90 days of the plan's approval. A second payment of ₹6,026 crore is scheduled to be disbursed two years after the initial approval date.
In addition to these cash payouts, secured creditors are also set to receive ₹1,500 crore in non-convertible debentures (NCDs). These NCDs come with a put option, allowing lenders to redeem them at face value within a specified timeframe. The Adani Group retains the option to redeem these instruments under defined conditions, and they are further secured by guarantees from other listed Adani group entities.
National Asset Reconstruction Company Ltd (NARCL) stands as the largest creditor, holding 85.43% of Jaiprakash Associates’ admitted debt. Other key creditors include Asset Care & Reconstruction Enterprise (ACRE), Axis Bank, State Bank of India, The Bank of New York Mellon, and ARCIL, among several others.
While the total resolution bid by Adani stands at ₹14,535 crore, financial creditors are projected to recover approximately ₹13,500 crore. The remaining funds are allocated to cover insolvency process expenses, payments to operational creditors, and other statutory obligations.
This transaction marks a pivotal moment in addressing Jaiprakash Associates' substantial debt burden and represents a crucial recovery milestone for all involved lenders.