Jaiprakash Associates, a flagship company of the Jaypee Group, has defaulted on loans totaling ₹ 4,059 crore, including both the principal and interest.
Jaiprakash Associates Ltd (JAL) stated in a regulatory filing that the company defaulted on the repayment of ₹ 1,713 crore in principal and ₹ 2,346 crore in interest on December 31.
The loans were from various banks and included fund-based working capital, non-fund based working capital, term loans, and foreign currency convertible bonds (FCCB).
In September 2018, ICICI Bank filed an insolvency petition against JAL, which is still being considered by the Allahabad bench of the National Company Law Tribunal (NCLT).
In September 2022, India’s largest lender, SBI, filed a case with the NCLT against JAL, alleging a total default of ₹ 6,893.15 crore as of September 15, 2022.
In the previous month, JAL and its group companies announced the sale of their remaining cement assets to Dalmia Bharat Ltd for an enterprise value of ₹ 5,666 crore and their exit from the sector as part of their strategy to reduce debt.
Previously, as part of its debt resolution efforts, JAL had sold more than 20 million tonnes per annum of cement capacity to UltraTech Cement, a company belonging to the Aditya Birla group, between 2014 and 2017.
n 2015, the Jaypee group sold its controlling stake in more than 2 million tonnes of cement capacity to the Dalmia Group. JAL’s Executive Chairman, Manoj Gaur, stated that the company has been taking steps to reduce its debt and repay lenders.
To focus on its other core areas of business and repay the loans of lenders, JAL has decided to completely divest from the cement industry by selling its cement capacity of 9.4 million tonnes per annum to Dalmia Cement (Bharat) Ltd,” said Manoj Gaur, JAL’s Executive Chairman.
Manoj Gaur, JAL’s Executive Chairman, stated that the company will further strengthen its reputation as a trustworthy organization in the infrastructure sector of the country in the future.
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