The NCLT admitted JAL to CIRP on June 3 on pleas filed by ICICI Bank and the State Bank of India (SBI). The tribunal cited the company’s significant debt burden as ground to admit the pleas.
JAL faces a total debt of over ₹50,00 crore with multiple lenders having exposure. ICICI Bank alone claims over ₹3,000 crore including interest in dues.
The insolvency process stems from an initial plea filed by ICICI Bank in 2018 followed by a similar plea filed by SBI in 2022.
Efforts to reduce debt have included the sale of cement plants including a proposed ₹5,666 crore deal with Dalmia Bharat. However, the transaction remains incomplete, raising uncertainties.
In March-April 2024, the National Asset Reconstruction Company of India (NARCL)…
