Jaiprakash Associates, the parent company of the Jaypee Group, confirmed on July 7 that the company had defaulted on loans totaling Rs. 4,044 crores, including principal and interest.
According to a regulatory filing by Jaiprakash Associates Ltd (JAL), repayment of a principal balance of 1,660 crore and interest of 2,384 crore was due on June 30th.
According to the specifics, the loans are for different banks, and the types of obligations include term loans, FCCBs (foreign currency convertible bonds), fund-based working capital, and non-fund-based working capital.
Only $4,044 crore of the company’s total loan (including interest) that is due as of June 30, 2023, according to JAL, is past due.
According to the company, the amount of 18,319 crores would be further lowered when it is transferred to the planned Special Purpose Vehicle (SPV), which is waiting for National Company Law Tribunal (NCLT) approval.
“The entire loan is in any case under restructuring,” it said, noting that it has been making concrete efforts to lower borrowings.
According to the statement, “After the proposed divestment of the cement business and the restructuring that is under consideration, the borrowing will get almost to zero upon implementation of the revised restructuring plan.”
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On a directive from the RBI, the ICICI Bank filed a petition with the NCLT Allahabad under section 7 of the Insolvency and Bankruptcy Code 2016 against the firm, which it has opposed.
The submission stated that the issue will be resolved concurrently with the Scheme of Arrangement for the transfer of real estate to the SPV that the NCLT would approve.
ICICI Bank filed an insolvency petition against JAL earlier in September 2018. SBI has also filed an NCLT petition against JAL, alleging a cumulative default of $6,893.15 billion as of September 15, 2022.
As part of its debt reduction plan, JAL recently announced the sale of its remaining cement assets to Dalmia Bharat Ltd for an enterprise value of 5,666 crore and its withdrawal from the industry. As part of its effort to resolve its debt, it also sold UltraTech Cement, a member of the Aditya Birla group, a capacity for producing more than 20 million tonnes of cement a year between 2014 and 2017.
Suraksha Group, a Mumbai-based real estate company, received NCLT clearance in March for its proposal to purchase JIL and finish building almost 20,000 units in Noida.
Despite the fact that several parties have appealed the NCLT ruling to the National Company Law Appellate Tribunal (NCLAT).
