CARE Ratings has withdrawn, with immediate effect, all ratings related to the bank facilities and non-convertible debentures (NCDs) of Jaiprakash Associates Limited (JAL) following the successful implementation of the resolution plan approved by the National Company Law Tribunal (NCLT).
The development comes as JAL undergoes acquisition and restructuring by the Adani Group under the insolvency resolution process. The company, formerly one of North India’s prominent infrastructure and construction companies, has settled its outstanding obligations linked to the banking facilities and related debt instruments in accordance with the approved resolution plan. According to reports, a resolution plan of approximately Rs 15,000 crore was prepared for the acquisition, under which creditors are to be paid according to specified terms and timelines.
According to CARE Ratings, the withdrawal of the ratings follows the successful implementation of the resolution plan approved by the NCLT. JAL has settled the outstanding liabilities associated with its bank facilities and related debt instruments in accordance with the approved plan.
The rating agency said there are no outstanding amounts under the relevant bank facilities and NCDs. The company has also received the required no-dues certificates from creditors and trustees. In addition, the process of satisfaction of the relevant charges has been completed in the records of the Ministry of Corporate Affairs.
As the debt instruments previously rated by CARE Ratings no longer represent active outstanding liabilities, the agency has withdrawn the ratings.
The withdrawal of the ratings does not represent the assignment of a new or improved credit rating to the company. The ratings were withdrawn because the bank facilities and debt instruments to which they related have been settled and no amounts remain outstanding under them.
The resolution of the insolvent company’s previous financial obligations forms part of the restructuring process following the Adani Group’s acquisition of JAL.
As part of the restructuring process, the company’s corporate identity has also been changed. Jaiprakash Associates has been renamed Adani Infrastructure Integrated Solutions Limited.
Jaiprakash Associates was formerly a key company of the Jaypee Group, with operations spanning engineering, construction, cement, real estate, power and infrastructure. The company remained a prominent corporate name in North India for an extended period due to its involvement in large infrastructure projects.
However, the company faced significant challenges following rising debt and financial pressure and subsequently entered the insolvency resolution process. The Adani Group’s acquisition proposal later provided the route for its restructuring.
