Jaiprakash Associates said the company’s total borrowings (including interest) is Rs 29,396 crore, to be repaid by 2037, of which only Rs 4,161 crore is outstanding as on March 31, 2023. (Representational photo)
Loans relating to various banks, and the nature of the liability is fund-based working capital, non-fund-based working capital, term loans and FCCBs
Jaiprakash Associates, the flagship firm of the crisis-hit Jaypee Group, has defaulted on loans worth Rs 4,161 crore, including principal and interest amount. In a regulatory filing on April 29, Jaiprakash Associates Ltd (JAL) informed that the company defaulted on repayment of principal amount of Rs 1,653 crore and interest of Rs 2,508 crore as on March 31.
The nature of loan, and liability, relating to various banks are fund-based working capital, non-fund-based working capital, term loans and FCCBs (Foreign Currency Convertible Bonds).
“The total borrowings (including interest) of the company is Rs 29,396 crore, to be repaid by 2037, of which only Rs 4,161 crore is outstanding as on March 31, 2023,” Jaiprakash Associates said in the filing.
The company said that out of the total borrowings of Rs 29,396 crore, Rs 18,051 crore will be further reduced on transfer to the proposed Special Purpose Vehicle (SPV), for which the scheme of arrangement duly approved by all the stakeholders is pending approval of NCLT. National Company Law Tribunal).
“The entire debt is anyway under restructuring,” JAL said.
The company said it is taking concrete steps to reduce debt.
“After the proposed disinvestment of the cement business and the restructuring under consideration, the borrowings will come down to almost nil upon implementation of the revised restructuring plan,” it said.
JAL also said that ICICI Bank had approached NCLT Allahabad on the direction of RBI under Section 7 of the Insolvency and Bankruptcy Code 2016 against the company. Objected to this.
“The matter is pending with the planning of arrangements for transfer of real estate to the SPV to be approved by the NCLT,” the filing said.
In September 2018, ICICI Bank filed a bankruptcy petition against JAL. The country’s largest lender SBI has also moved NCLT against JAL, claiming a total default of Rs 6,893.15 crore till September 15, 2022.
Recently, JAL and its group firms announced their exit from the sector as part of their strategy to sell their remaining cement assets to Dalmia Bharat Ltd at an enterprise value of Rs 5,666 crore and reduce debt.
Earlier, as part of its debt resolution exercise, JAL sold over 20 million tonnes per annum cement capacity to Aditya Birla Group firm UltraTech Cement between 2014 and 2017.
In its erstwhile subsidiary Jaypee Infratech Ltd (JIL), Mumbai-based realty firm Suraksha Group has recently received approval from NCLT to acquire JIL and complete around 20,000 apartments in Noida.
read all latest business news, tax news And stock market update Here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
