Jaiprakash Associates Defaults on Rs 4,161 Crore Loans on March 31

Disaster-hit Jaypee Group’s flagship agency Jaiprakash Associates has defaulted on loans of Rs 4,161 crore, together with principal and curiosity quantity. In a regulatory submitting on April 29, Jaiprakash Associates Ltd (JAL) knowledgeable that the corporate on March 31 defaulted on repayments of a principal quantity of Rs 1,653 crore and curiosity of Rs 2,508 crore.

The loans pertained to varied banks, and the character of the duty is fund-based working capital, non-fund-based working capital, time period loans and FCCB (international forex convertible bonds).

“The full borrowing (together with curiosity) of the corporate is Rs 29,396 crore, repayable by 2037, in opposition to which solely Rs 4,161 crore is overdue as on March 31, 2023,” Jaiprakash Associates mentioned within the submitting.

Out of the overall borrowing of Rs 29,396 crore, the corporate mentioned Rs 18,051 crore will get additional decreased on switch to the proposed particular goal automobile (SPV) for which the scheme of association duly accepted by all of the stakeholders is pending sanction of the NCLT (Nationwide Firm Regulation Tribunal).

“The complete mortgage is in any case underneath restructuring,” JAL mentioned.

The corporate mentioned it has been taking tangible steps to cut back the borrowings.

“Put up the proposed divestment of cement enterprise and the restructuring into consideration, the borrowing will get nearly to nil upon implementation of revised restructuring plan,” it mentioned.

JAL additionally mentioned that the ICICI Financial institution had approached the NCLT Allahabad on the path of the RBI underneath part 7 of the Insolvency & Chapter Code 2016 in opposition to the corporate. It has objected the identical.

“The matter is pending to be determined concurrently with the Scheme of Association for switch of Actual Property to the SPV to be sanctioned by the NCLT,” the submitting mentioned.

In September 2018, ICICI Financial institution filed an insolvency petition in opposition to JAL. The nation’s greatest lender SBI has additionally moved the NCLT in opposition to JAL, claiming a complete default of Rs 6,893.15 crore as of September 15, 2022.

Just lately, JAL and its group companies introduced the sale of its remaining cement property to Dalmia Bharat Ltd at an enterprise worth of Rs 5,666 crore and exit from the sector as a part of its technique to cut back debt.

Earlier, as a part of its debt decision train, JAL had offered greater than 20 million tonnes every year cement capability to Aditya Birla group agency UltraTech Cement between 2014 and 2017.

In its erstwhile subsidiary Jaypee Infratech Ltd (JIL), Mumbai-based realty agency Suraksha Group has not too long ago received approval from the NCLT for its bid to amass JIL and full round 20,000 flats in Noida.

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