MUMBAI: Jaiprakash Associates has informed the stock exchanges that it has defaulted on Rs 4,059 crore of loans from various lenders. The company, which has a total debt of Rs 29,090 crore, needs to make payments in respect of fund-based working capital, non-fund-based working capital, term loans and foreign currency convertible bonds.
In its exchange filing, the company said that in terms of the restructuring plan of its total debt, Rs 11,689 crore was to be discharged against the sale of identified cement plants of the company and its wholly owned subsidiary to UltraTech Cement. Around Rs 6,367 crore of the debt has been identified as being “sustainable debt” against which it will create security for the lenders. Another Rs 13,590 crore has been revised to Rs 11,833 crore after reducing Rs 2,543.55 crore through a debt-asset swap. This Rs 11,833 crore is to be transferred to a special purpose vehicle, (SPV), Jaypee Infrastructure Development Limited.
“The Scheme of Arrangement (Scheme) for the said hive-off duly approved by the Stock Exchanges, Shareholders, Creditors, and other Regulators is pending sanction by the National Company Law Tribunal (NCLT),” the company said.
ICICI Bank had initiated insolvency proceedings in the NCLT in Allahabad in 2018. Subsequently, SBI filed an insolvency petition against the company in September 2022.
The company has been trying to stave off insolvency by putting its assets on the block. In the past, the company’s CEO, Major Gaur, blamed the liquidity problems on pending receipts on the sale of some cement units. The company has also failed to get Rs 750 crore it has been claiming from another group company, Jaypee Infratech, which is under insolvency resolution.
