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Business News/ Companies / News/  Jaiprakash Associates defaults on 3,961 crore loans on May 31
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Jaiprakash Associates defaults on ₹3,961 crore loans on May 31

Jaiprakash Associates, the flagship company of crisis-hit Jaypee Group, Wednesday said it has defaulted on a repayment of ₹3,961 crore of loans due on May 31, which including both principal and interest amount

Jaiprakash Associates said the firm on May 31 defaulted on repayments of a principal amount of ₹1,600 crore and interest of ₹2,361 crore (Photo: Mint)Premium
Jaiprakash Associates said the firm on May 31 defaulted on repayments of a principal amount of 1,600 crore and interest of 2,361 crore (Photo: Mint)

Jaiprakash Associates Ltd, the flagship company of crisis-hit Jaypee Group, Wednesday said it has defaulted on a repayment of 3,961 crore of loans due on May 31, which including both principal and interest amount.

In a regulatory filing, Jaiprakash Associates informed that the firm on May 31 defaulted on repayments of a principal amount of 1,600 crore and interest of 2,361 crore.

“The total borrowing (including interest) of the company is 29,429 crore, repayable by 2037, against which only 3,961 crore is overdue as on 31.05.2023," the Jaiprakash Associates said in the filing.

“Out of the total borrowing of 29,429 crore, 18,231 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" it added.

The company said 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.

The company further said it has already informed that ICICl Bank had approached NCLT, Allahabad on the direction of RBI under section 7 of lnsolvency & Bankruptcy Code 2016 against the company which has been contested by it. 

"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 Jaiprakash Associates. The country's biggest lender SBI has also moved the NCLT against Jaiprakash Associates, claiming a total default of 6,893.15 crore as of September 15, 2022.

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Published: 07 Jun 2023, 08:17 PM IST
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