UltraTech Cement Resolves Long-Standing Dispute with Jaiprakash Associates

UltraTech Cement has reached a settlement with Jaiprakash Associates Ltd regarding their long-standing arbitration over the Dalla Super unit and associated mines. This resolution involves the redemption of preference shares worth Rs 1,000 crore, aiding Jaiprakash Associates in their Corporate Insolvency Resolution Process.

In a significant development, UltraTech Cement announced on Thursday that it has successfully settled an ongoing arbitration with Jaiprakash Associates Ltd concerning the Dalla Super unit and its associated mines. The resolution includes UltraTech redeeming 1,00,000 Series A Preference Shares valued at Rs 1,00,000 each, totaling Rs 1,000 crore.

This settlement will play a crucial role in monetizing the assets of Jaiprakash Associates as part of its Corporate Insolvency Resolution Process (CIRP), with the Adani Group emerging as the successful resolution applicant. The resolution effectively concludes a long-standing dispute between UltraTech and the debt-laden Jaiprakash Associates, currently facing insolvency proceedings.

The Dalla Super unit and associated mines were acquired by UltraTech in 2017 following a scheme of arrangement authorized by the National Company Law Tribunal (NCLT) in Mumbai and Allahabad. The recent settlement entails all rights and interests in the Dalla Super unit and mines now fully vesting with UltraTech, ending all related claims and liabilities.