Jaypee Group's flagship firm Jaiprakash Associates made a startling disclosure on Monday, November 6, that it had defaulted on a borrowing of ₹4,258 crore from banks and financial institutions.
A sum of ₹4,258 crore, including principal and interest amount, was overdue as on October 31, 2023, as per a company statement.
The company said now its total borrowing, including interest, stands at ₹29,272 crore that is repayable by 2037. Out of that, ₹18,682 crore will get transferred to the proposed special purpose vehicle (SPV) for which the Scheme of Arrangement will have to be approved by shareholders and NCLT, the company stated.
"The entire loan is in any case under restructuring," it said.
In response to the crisis, it stated in its release, "As a responsible borrower, the Company has been taking tangible steps to reduce the borrowings. Post the proposed divestment of the Cement Business and the restructuring under consideration, the borrowing will get almost to Nil upon implementation of the revised restructuring plan."
In October, after years of stagnation in resolving the debt issue with Jaiprakash Associates, a recent NCLT order revealed that the ICICI Bank and JP Associates have jointly requested the NCLT to postpone the IBC hearings until the end of November.
Both parties have indicated that they are currently engaged in negotiations for a loan restructuring proposal.
The Jaiprakash Associates stock dipped 1.75 points, or 9.56%, to ₹16.55 at NSE.
(Edited by : Shoma Bhattacharjee)
