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Business News/ Companies / Jaiprakash Associates defaults on 3,956 cr loans
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Jaiprakash Associates defaults on ₹3,956 cr loans

In a regulatory filing on Tuesday, Jaiprakash Associates informed that the company on April 30 defaulted on repayments of a principal amount of ₹1,642 crore and interest of ₹2,314 crore.

The total borrowing (including interest) of the company is ₹29,277 crore, repayable by 2037, against which only ₹3,956 crore is overdue as on April 30, 2023, Jaiprakash Associates said (Photo: Mint)Premium
The total borrowing (including interest) of the company is 29,277 crore, repayable by 2037, against which only 3,956 crore is overdue as on April 30, 2023, Jaiprakash Associates said (Photo: Mint)

Jaiprakash Associates, the flagship company of crisis-hit Jaypee Group, Tuesday said it has defaulted on loans worth 3,956 crore, which includes both principal and interest amounts.

In a regulatory filing, Jaiprakash Associates informed that the firm on April 30 defaulted on repayments of a principal amount of 1,642 crore and interest of 2,314 crore.

The loans pertained to various banks, and the nature of the obligation is fund-based working capital, non-fund-based working capital, term loans and FCCB (foreign currency convertible bonds), the company said.

The company said “The total borrowing (including interest) of the company is 29,277 crore, repayable by 2037, against which only 3,956 crore is overdue as on April 30, 2023. 

Out of the said borrowing of 29,277 crore, 18,106 crore will get 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 sanction of NCLT. 

The entire loan is in any case under restructuring, the company said, adding that it has been taking tangible steps to reduce the borrowings.

"Post the proposed divestment of cement business and the restructuring under consideration, the borrowing will get almost to nil upon implementation of revised restructuring plan," it said.

Jaiprakash Associates said that ICICI Bank had approached the NCLT Allahabad on the direction of the RBI under section 7 of the Insolvency and Bankruptcy Code 2016 against the company which has been contested by the Jaiprakash Associates.

"The matter is pending to be decided simultaneously with the Scheme of Arrangement for transfer of real estate to the SPV to be sanctioned by the NCLT," the filing said.

In September 2018, ICICI Bank filed an insolvency petition against JAL. The country's biggest lender SBI has also moved the NCLT against JAL, claiming a total default of 6,893.15 crore as of September 15, 2022, news agency PTI reported.

Recently, JAL and its group firms announced the sale of its remaining cement assets to Dalmia Bharat Ltd at an enterprise value of 5,666 crore and exit from the sector as part of its strategy to reduce debt.

Earlier, as part of its debt resolution exercise, Jaiprakash Associates had sold more than 20 million tonnes per annum cement capacity to Aditya Birla group firm UltraTech Cement between 2014 and 2017.

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Published: 09 May 2023, 07:33 PM IST
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