Mumbai: Struggling Jindal Steel & Power Ltd (JSPL) on Thursday said it defaulted on payment of Rs15.43 crore towards interests on four non-convertible debentures (NCDs), due last month, because of short-term cash flow mismatches.
This is the third time in the past two months that JSPL has failed to make interest payments as cash flows continue to fall short of liabilities.
The Naveen Jindal-led steel and power producer is in the middle of reducing debt by selling its power assets and finding joint venture partners in its steel business. It is also looking at selling controlling stakes in overseas mines.
The company “has not made payment of Rs15.43 crore towards the interests due on non-convertible debentures (NCDs), the due date for payment of which was October 31, 2016,” JSPL said in a filing to NSE on Thursday. It plans to make the payment in due course, it added.
The company had missed making interest payment on NCDs due in September and October, filings show. In March, ratings agency Crisil Ltd downgraded the rating on certain debt instruments of JSPL to default, citing delay in payment of interest on the company’s term loans.
JSPL, which has reported loss for the past seven straight quarters, had a consolidated debt of Rs44,139.66 crore as on 31 March. At 11:50am, JSPL’s shares were up 0.74% to Rs75.25 on the BSE, while the Benchmark Sensex index is up 1.4% at 27,566.68.