Dalmia Bharat to Engage with IRP on Acquisition of Jaypee's Cement Assets

Dalmia Bharat will engage with the interim resolution professional of Jaiprakash Associates Ltd regarding the pending acquisition of the latter's cement assets. The deal, announced 18 months ago, faces delays due to ongoing arbitration with UltraTech and unresolved discussions with JAL's lenders and the National Asset Reconstruction Company Ltd.

PTI | New Delhi | Updated: 07-06-2024 19:39 IST | Created: 07-06-2024 19:39 IST
Dalmia Bharat to Engage with IRP on Acquisition of Jaypee's Cement Assets
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Dalmia Bharat has announced plans to engage with the interim resolution professional (IRP) appointed for Jaiprakash Associates Ltd (JAL) concerning the acquisition of JAL's cement assets.

The acquisition, initially announced 18 months ago, remains incomplete due to prolonged discussions between JAL's lenders and an ongoing arbitration process involving UltraTech.

'This engagement is part of our continuous effort and accordance with our previous disclosures,' Dalmia Bharat clarified in a regulatory statement.

Earlier this week, the Allahabad bench of the National Company Law Tribunal (NCLT) initiated insolvency proceedings against JAL, suspending its board and appointing an IRP as per the Insolvency & Bankruptcy Code (IBC).

In December 2022, Dalmia Bharat disclosed plans to acquire the cement assets of JAL and its associates for Rs 5,666 crore. A definitive agreement was signed in April 2023, but the deal remains pending amid unresolved negotiations with banks and NARCL.

Additionally, arbitration between JAL and UltraTech is ongoing over assets in Uttar Pradesh, further complicating the acquisition process.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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