Jaiprakash Associates defaults on Rs 4,258 crore loans
Jaiprakash Associates on Monday said it has defaulted on loans worth Rs 4,258 crore, including principal and interest amount. In a regulatory filing, Jaiprakash Associates Ltd (JAL) informed that the company has on October 31 defaulted on repayments of a principal amount of Rs 1,733 crore and interest of Rs 2,525 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).
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Offering CollegeCourseWebsiteIndian School of BusinessISB Leadership in AIVisitNorthwestern UniversityKellogg Marketing Leadership Development ProgramVisitIIM KozhikodeIIMK Chief Product Officer ProgrammeVisit «The total borrowing (including interest) of the company is Rs 29,272 crore, repayable by 2037, against which only Rs 4,258 crore is overdue as on October 31, 2023,» JAL said.
Out of the said borrowing of Rs 29,272 crore, Rs 18,682 crore will get further reduced on transfer to the proposed Special Purpose Vehicle (SPV) for which the Scheme of Arrangement duly approved by all the stakeholders is pending sanction of 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 (IBC) 2016 against the company. It has contested the move.
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