The company’s total loan (including interest) is Rs 29,396 crore, repayable by 2037, against which only Rs 4,161 crore is outstanding as of March 31, 2023, Jaiprakash Associates said. (Representative photo)
The loans were to various banks and the nature of the obligation is fund-based working capital, non-fund-based working capital, term loans and FCCB
The crisis-hit Jaypee Group’s flagship company, Jaiprakash Associates, defaulted on loans of Rs 4,161 crore including principal and interest. In an April 29 regulatory filing, Jaiprakash Associates Ltd (JAL) reported that the company defaulted on March 31 on repayment of principal amount of Rs 1,653 crore and interest of Rs 2,508 crore.
The loans were to various banks and the nature of the bond is fund-based working capital, non-fund-based working capital, term loans and FCCBs (currency convertible bonds).
“The total loan (including interest) of the company is Rs 29,396 crore, repayable by 2037, against which only Rs 4,161 crore is outstanding as of March 31, 2023,” Jaiprakash Associates said in the filing. .
Out of the total loan of Rs 29,396 crore, the company said that Rs 18,051 crore will be further reduced upon transfer to the proposed special purpose vehicle (SPV) for which the scheme of arrangement duly approved by all stakeholders is awaiting sanction from the NCLT (National Company Law Tribunal).
“The entire loan is being restructured anyway,” JAL said.
The company said it has taken concrete steps to reduce borrowing.
“After the proposed sale of the cement business and the planned restructuring, the loan will become almost zero when the revised restructuring plan is implemented,” he said.
JAL also said that ICICI Bank approached NCLT Allahabad over the direction of RBI under Section 7 of the Insolvency and Bankruptcy Code 2016 against the company. He objected the same.
“The matter is pending determination concurrently with the Scheme of Arrangement for the transfer of real property to the SPV which will be sanctioned by the NCLT,” the filing states.
In September 2018, ICICI Bank filed for insolvency against JAL. The country’s largest lender, SBI, also moved the NCLT against JAL, claiming a total default of Rs 6,893.15 crore as of September 15, 2022.
Recently, JAL and its group companies announced the sale of its remaining cement assets to Dalmia Bharat Ltd at an enterprise value of Rs 5,666 crore and exit from the sector as part of its debt reduction strategy .
Previously, as part of its debt resolution exercise, JAL had sold more than 20 million tonnes of cement capacity per year to Aditya Birla Group company UltraTech Cement between 2014 and 2017.
In its former subsidiary Jaypee Infratech Ltd (JIL), the Mumbai-based real estate company Suraksha Group recently obtained NCLT approval for its bid to acquire JIL and develop approximately 20,000 apartments in Noida.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)