Jaiprakash Associates defaults on ₹4,044-crore loans, including principal, interest amount

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₹4,044 crore, including principal and interest amount, reported news agency PTI. Jaiprakash Associates Ltd (JAL), in a regulatory filing, said that on June 30th defaulted on repayments of a principal amount of ₹1,660 crore and interest of ₹2,384 crore. As per the details, the loans pertain 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).

ALSO READ: REC extends ₹4,785 crore loan for HPCL Rajasthan Refinery’s project in Barmer "The total borrowing (including interest) of the company is ₹29,477 crore, repayable by 2037, against which only ₹4,044 crore is overdue as on June 30, 2023," JAL said. The firm said that ₹18,319 crore will get further reduced on transfer to the proposed Special Purpose Vehicle (SPV) that is pending sanction of the National Company Law Tribunal (NCLT). "The entire loan is in any case under restructuring," it said, adding, 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 the revised restructuring plan," it said. Meanwhile, the CICI 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, which it has contested. "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.