Jaiprakash Associates defaults on ₹4,616 crore loan amid restructuring

1 week ago 5

2 min read 07 May 2024, 11:59 AM IST

JAL's full liabilities, including interest, basal astatine ₹29,805 crore, with repayment scheduled until 2037. Currently, ₹4,616 crore of this is overdue. The sum comprises a main of ₹1,751 crore and involvement payments of ₹2,865 crore.

JAL disclosed its full borrowing (including interest) of the institution is ₹29,805 crore, repayable by 2037,

Jaiprakash Associates Ltd (JAL), the genitor institution of the distressed Jaypee Group, reported successful a regulatory filing connected May 6 that it failed to conscionable its indebtedness repayment obligations connected April 30, totalling ₹4,616 crore. The sum comprises a main of ₹1,751 crore and involvement payments of ₹2,865 crore.

JAL disclosed, "Total borrowing (including interest) of the institution is ₹29,805 crore, repayable by 2037, against which lone ₹4,616 crore is overdue arsenic of April 30, 2024."

The company's fiscal commitments, serviced done assorted banking facilities, including fund-based and non-fund-based moving capital, word loans, and overseas currency convertible bonds (FCCBs), are undergoing restructuring.

Out of its important indebtedness of ₹29,805 crore, JAL plans to transportation ₹18,955 crore to a Special Purpose Vehicle (SPV). This transfer, which is portion of a Scheme of Arrangement, awaits support from the National Company Law Tribunal (NCLT) and has already been endorsed by each applicable stakeholders.

"As a liable borrower, the institution has been taking tangible steps to trim the borrowings. After the projected divestment of the cement concern and the restructuring are taken into consideration, the borrowing volition get astir to nil." JAL elaborated connected its efforts to mitigate its fiscal challenges.

In summation to these fiscal manoeuvres, JAL is facing ineligible challenges. ICICI Bank has petitioned the NCLT Allahabad, pursuing directives from the Reserve Bank of India nether Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016, to initiate insolvency proceedings against the company. JAL is presently contesting this action, arsenic per a PTI report.

"The substance is pending to beryllium decided simultaneously with the Scheme of Arrangement for transportation of existent property to the SPV to beryllium sanctioned by the NCLT," stated the filing. Similarly, the State Bank of India has besides approached the NCLT Allahabad with a petition nether Section 7 of the Insolvency and Bankruptcy Code (IBC) against JAL, further complicating the company's ineligible people of action.

JAL has been actively divesting its cement operations to alleviate its indebtedness load. Moreover, related to its erstwhile subsidiary Jaypee Infratech Ltd (JIL), the Suraksha Group had its acquisition bid approved by the NCLT successful March 2023, aiming to implicit astir 20,000 pending apartments successful Noida. This decision, however, is present being contested astatine the National Company Law Appellate Tribunal (NCLAT) by assorted stakeholders, arsenic per the PTI report.

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Published: 07 May 2024, 11:59 AM IST