Jaypee Associates approves insolvency proceedings for Bhilai Jaypee Cement

Jaiprakash Associates Limited (JAL), currently undergoing Corporate Insolvency Resolution Process (CIRP), announced today that its Committee of Creditors (CoC) has authorized the initiation of insolvency proceedings for its subsidiary, Bhilai Jaypee Cement Limited (BJCL). The decision was ratified during the 13th CoC meeting, with e-voting results disclosed in a regulatory filing to the BSE and NSE.

In a post-facto intimation, the Resolution Professional (RP) Bhuvan Madan stated that 88.94% of creditors voted in favor of filing for BJCL’s CIRP under the Insolvency and Bankruptcy Code (IBC), 2016. The move aims to address BJCL’s financial distress while ensuring continuity under the insolvency framework.

The CoC also approved a budget of ₹936.27 crores for Jaypee Associates operational expenses from April to June 2025, including ₹856.73 crores for regular costs and ₹79.54 crores for one-time expenses. These outflows, classified as “insolvency resolution process costs,” aim to sustain JAL’s operations as a going concern.

Additionally, creditors cleared the issuance of bank guarantees worth ₹10 lakhs (fully collateralized by fixed deposits) to meet environmental compliance requirements for Jaypee Greens Greater Noida. The guarantees, categorized as “interim finance” under IBC, received 88.94% approval.

The CoC further appointed auditors for FY2025-26:

• Cost Auditor: M/s. J.K. Kabra & Co (₹4.55 lakhs + GST).
• Secretarial Auditor: M/s. VKC & Associates (₹3.50 lakhs + GST for 2025-30).
• Statutory Auditor: M/s. Dass Gupta & Associates (₹80 lakhs + GST for 2025-30).
• Internal Auditors: M/s. R Nagpal Associates (₹17.60 lakhs + GST) and M/s. DPNC GLOBAL LLP (₹27.50 lakhs + GST).

All resolutions surpassed the required 51%–66% voting thresholds, with approvals ranging between 85.98% and 88.94%. The RP emphasized compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) in the filing.

JAL, part of the debt-laden Jaypee Group, entered CIRP in 2023. The latest steps signal efforts to stabilize its subsidiaries and streamline financial oversight amid ongoing restructuring. The RP’s office confirmed adherence to IBBI regulations, with audits and budgetary controls aimed at maximizing value for creditors.

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