Jaiprakash Associates defaults ₹2,987 crore on principal and interest repayments

Construction agency Jaiprakash Associates Ltd has defaulted on payments to loan providers to the tune of ₹2,897 crore on February 28.

The corporation has defaulted on payment of ₹1,544 crore of desire overdues and an additional ₹1,353 crore value of principal to loan companies, in accordance to a notification on the bourses.

Creditors had been additional than 30 banks like ICICI Lender, Axis Financial institution, IDBI Bank, Canara Bank and Bank of Baroda. The default is on obligations this sort of as fund-centered doing work capital, non-fund-centered performing funds, time period financial loans and FCCB, the company claimed in the filing.

As of March 30, the corporation has a complete fantastic credit card debt of in excess of ₹27,500 crore to collectors.

Personal debt split-up

The debt crack-up incorporates ₹6,156 crore of sustainable personal debt, a different ₹18,102 crore of other credit card debt (that was to be swapped with SPV and potential debt property swap), non-fund based working money of ₹2,156 crore, fund-dependent doing the job cash (secured) of ₹423 crore and international currency convertible bond of ₹723 crore.

The enterprise in its stock market assertion reported the ‘Bucket 1 Debt’ of ₹11,689 crore, which is part of the ‘other debt’, was to be discharged in opposition to the sale of recognized cement vegetation of the corporation and its wholly-owned subsidiary to UltraTech Cement Limited. The transaction of the reported sale stands consummated.

The ‘Bucket 2a Debt’ of ₹6,367 crore, getting ‘sustainable debt’ will proceed as credit card debt of the business for which master restructuring agreement (MRA) executed by the anxious 32 lenders. The conditions of the MRA are becoming complied like creation of safety in favour of loan providers.

‘Bucket 2b Debt’ of ₹11,833.55 crore (₹13,590 crore first total as diminished by ₹2,543.55 crore settled as a result of immediate debt belongings swap), which is element of ‘Other Debt’ is to be transferred to a Special Intent Car or truck namely Jaypee lnfrastructure Improvement Constrained (a wholly-owned subsidiary of the organization) along with recognized land of the corporation.

Jaiprakash Associates, in a stock market place submitting, claimed it executed the MRA and took “due steps” but the banks “did not give impact to the financial debt posture in their respective books” therefore producing “non-reconciliation of financial debt / default posture in between the business and banks’ books”.

In September 2018, ICICI Financial institution experienced filed an insolvency petition towards Jaiprakash Associates ahead of the Allahabad Bench of the National Enterprise Law Tribunal.

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March 31, 2022