JP Power extends bond repayment deadline
Jaiprakash Power Ventures further extends so-called standstill agreement with bondholders up to 30 April
Mumbai: Debt-laden Jaiprakash Power Ventures Ltd on Wednesday said it had further extended a so-called standstill agreement with bondholders up to 30 April for $200 million worth of foreign currency convertible bonds (FCCBs) which were due on 13 February.
The bondholders will vote on the firms’s proposed repayment schedule in a 30 March meeting.
In January, the company had informed its bondholders that it will not be able to meet repayment obligations for the bonds maturing on 13 February.
On 12 February, the company entered into a standstill and voting agreement with some of its bondholders up to 27 February to get more time to formalize a rescheduled payment agreement. This agreement on Tuesday was extended and would be effective till 30 April.
As part of the proposed rescheduled payment agreement, the firm looks to extend the maturity date of the FCCB to 13 February 2016.
The proposed repayment schedule will include an upfront payment of $25 million on the effective date of rescheduling. Further, the company proposes to pay another $75 million on the receipt of the sale proceeds for its two hydropower plants to JSW Energy Ltd. The remaining amount is to be paid on or before 13 February 2016.
“The terms of the rescheduling remain subject to receipt of approval of the Reserve Bank of India,” the company said in a statement to BSE.
In November, JSW Energy agreed to buy Jaiprakash Power Ventures’ two hydropower assets, Baspa-II Hydro-electric project and Karcham Wangtoo Hydroelectric project, for Rs.9,700 crore.
Debt for the Jaypee group is seen at around Rs.60,000 crore, of which Jaiprakash Power Ventures alone had debt of Rs.17,887.72 crore at the end of the September quarter. The firm has started talks with its bankers to refinance debt worth Rs.10,000 crore, Mint reported on 3 February.
In the last two years, the group has been selling assets to reduce debt. In a recent deal, Aditya Birla Group’s Ultratech Cement Ltd agreed to buy Jaiprakash Associates’s two cement plants in Madhya Pradesh for Rs.5,400 crore.
For the December quarter, Jaiprakash Power Ventures Ltd reported a net loss narrowed to Rs.90.21 crore from Rs.153.05 crore a year ago. Net sales in the same period jumped 110.72% to Rs.1,037.63 crore from Rs.492.42 crore in the year-ago quarter.
The firm’s share rose 0.24% to Rs.12.31 apiece as the benchmark Sensex closed 0.72% lower at 29,380.73 points.
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