JP Associates offers to clear debt of ₹10,000 crore in 2 years
Jaiprakash Associates has proposed to clear its debt of ₹10,000 crore in two years, provided lenders approved its debt restructuring plan and release ₹600 crore in blocked banking limits, said people aware of the matter.
«Principal repayments on the company's loans are due in 2037. Their proposal is that limits should be released, and operations allowed to continue so that the debt can be serviced,» said a banker aware of the proposal.
A consortium of 34 banks has provided financing to the debt-laden company, the flagship of Jaypee group, housing its hotel, real estate and construction businesses.
While the banks had approved the debt restructuring plan a few years ago, it has not yet been implemented as ICICI Bank and SBI have approached the National Company Law Tribunal to initiate insolvency proceedings against the company.
Jaiprakash Associates did not respond to requests for comment.
«The sustainable portion can be repaid within 24 months with asset sales that are in the process and the company's own earnings,» said one of the persons cited above.
