Crisis-hit Jaiprakash Associates, the main firm of Jaypee Group, has defaulted on loans of Rs 4,161 crore, including principal and interest.
Jaiprakash Associates Ltd (JAL) said in a regulatory filing on April 29 that the business defaulted on repayments of Rs 1,653 crore in principal and Rs 2,508 crore in interest on March 31.
The loans were made to several banks, and the obligations were of the fund-based working capital, non-fund-based working capital, term loans, and FCCB (foreign currency convertible bonds) variety.
“The total borrowing (including interest) of the company is Rs 29,396 crore, repayable by 2037, against which only Rs 4,161 crore is overdue as of March 31, 2023,” Jaiprakash Associates stated in the statement.
The company stated that of the total borrowing of Rs 29,396 crore, Rs 18,051 crore will be further reduced upon transfer to the proposed special purpose vehicle (SPV), for which the scheme of arrangement has been duly approved by all stakeholders and is awaiting NCLT (National Company Law Tribunal) sanction.
“The entire loan is in any case undergoing restructuring,” JAL stated.
The corporation stated that it had taken concrete actions to minimise its borrowings.
“Following the proposed divestment of the cement business and the restructuring under consideration, borrowing will be nearly nil upon implementation of the revised restructuring plan,” it stated.
JAL also stated that ICICI Bank had sought the NCLT Allahabad on the RBI’s direction under Section 7 of the Insolvency and Bankruptcy Code 2016. It has raised the same objection.
“The matter is pending to be decided concurrently with the Scheme of Arrangement for transfer of Real Estate to the SPV, which is to be sanctioned by the NCLT,” according to the filing.
ICICI Bank filed an insolvency petition against JAL in September 2018. SBI, the country’s largest lender, has also filed a complaint with the NCLT against JAL, alleging a total default of Rs 6,893.15 crore as of September 15, 2022.
JAL and its group companies recently announced the sale of its remaining cement assets to Dalmia Bharat Ltd for Rs 5,666 crore and withdrawal from the sector as part of its debt-reduction strategy.
JAL has previously sold more than 20 million tonnes of cement capacity to Aditya Birla group firm UltraTech Cement as part of its debt resolution process between 2014 and 2017.
Suraksha Group, a Mumbai-based real estate developer, recently received NCLT clearance for its proposal to acquire JIL and complete around 20,000 units in Noida through its former subsidiary Jaypee Infratech Ltd (JIL).