In a high-stakes turn in the resolution process of debt-ridden Jaiprakash Associates Ltd (JAL), the country’s second largest corporate insolvency case, the Committee of Creditors (CoC) has approved a challenge process. The challenge mechanism, if implemented, will push the five competing and shortlisted bidders into a real-time showdown, sort of a direct auction where bids and counter bids are placed, potentially molding the outcome in the final hours.
This follows an overwhelming approval, with 93.1 per cent of creditors supporting the mechanism. The requisite number was 51 per cent.
The stock market notification, JAL’s Resolution Professional (RP) said, the CoC was “to approve the mechanism for commercial negotiations with the…