Jaiprakash Associates defaults on Rs 3,956 cr loans; says taking steps to cut debt
New Delhi: Crisis-hit Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans worth Rs 3,956 crore, including principal and interest amount.
In a regulatory filing, Jaiprakash Associates Ltd (JAL) informed that the company on April 30 defaulted on repayments of a principal amount of Rs 1,642 crore and interest of Rs 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).
JAL said that "the total borrowing (including interest) of the company is Rs 29,277 crore, repayable by 2037, against which only Rs 3,956 crore is overdue as on April 30, 2023".
Out of the total borrowing, the company said Rs 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 stakeholders is pending sanction of the 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," it said.
JAL also 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. It has contested the move.
"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.