“The borrowing (including interest) of the company is Rs 29,272 crore, repayable by 2037, against which Rs 4,258 crore is overdue as of October 31, 2023,” JAL said.
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NEW DELHI: Jaypee Group’s flagship company Jaiprakash Associates Ltd (JAL) has defaulted on loans worth Rs 4,258 crore. The date of default was October 31st. Of the defaulted loan, the principal amount stood at Rs 1,733 crore while the interest component was Rs 2,525 crore.
JAL, in a regulatory filing, said that 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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“The borrowing (including interest) of the company is Rs 29,272 crore, repayable by 2037, against which Rs 4,258 crore is overdue as of October 31, 2023,” JAL said. It said out 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 the stakeholders is pending sanction of NCLT.
The loan is in any case under restructuring, it added. The company said it has been taking tangible steps to reduce the borrowings. Earlier this year, Dalmia Cement entered into a binding agreement to acquire the clinker, cement and power plants of JAL and its associate at an enterprise value of Rs 5,666 crore.
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Before this, JAL had divested over 20 MTPA cement capacity in favour of UltraTech Cement between 2014 and 2017. JAL said 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. In September 2018, the bank filed an insolvency petition against JAL. SBI has also moved the NCLT against JAL, claiming a default of Rs 6,893.15 crore as of September 15, 2022.
