PNC Infratech’s Bold Move: Acquiring Debt-Ridden Jaiprakash Associates

The Competition Commission of India (CCI) gave its in-principle nod for PNC Infratech's acquisition of Jaiprakash Associates Ltd, a company tangled in debt issues. This move comes as the acquiring firm gears up for a bid in the ongoing insolvency proceedings of JAL.

The acquisition outlines a strategic takeover of between 95 to 100 percent of JAL, either directly by PNC Infratech or through a special subsidiary it might establish. This approval from the CCI becomes crucial after a Supreme Court ruling that mandates such a step for resolution plans within the Insolvency and Bankruptcy Code framework.

In addition to PNC Infratech, proposals from Adani Group and Dalmia Bharat have also been cleared. As creditors await resolution plan votes, the CoC for JAL reviews these plans, while more companies like Vedanta Group seek CCI nods for their submissions. JAL's massive debt stems from defaults on loans as claims from creditors reach Rs 57,185 crore.