Financial creditors of Jaiprakash Associates submit claims of Rs 51k cr
The financial creditors of Jaiprakash Associates Ltd (JAL), which is undergoing corporate insolvency resolution process, have submitted claims worth Rs 51,914 crore to the resolution professional.
State Bank of India has submitted the highest claims of Rs 15,465 crore or 30% of the total claims. ICICI Bank with Rs 9,203 crore has the second highest claims against JAL. ICICI Bank accounts for almost 18% of the total claims. Others with big claims against the corporate debtor include IDBI Bank (Rs 5,794 crore), LIC (Rs 3,021 crore) and Asset Care & Reconstruction Enterprise Limited (Rs 2,315 crore).
Among the financial creditors, there are 31 banks and financial institutions and 1,517 allotees of real estate projects of the company. Real estate allottees have submitted claims of Rs 1,893 crore. Meanwhile, Operational creditors have submitted claims worth Rs 1,887 crore.
The National Company Law Tribunal (NCLT) on 3 June had given its nod to initiate insolvency proceedings against debt-ridden Jaiprakash Associates Ltd, admitting the plea filed by private lender ICICI Bank.
Jaiprakash Associates Ltd (JAL), which is the flagship firm of Jaypee Group, is mainly into construction, cement and hospitality businesses. JAL has sold many cement plants in the last few years to reduce its debt.
A two-member bench at NCLT, Allahabad, comprising Members Praveen Gupta and Ashish Verma pronounced the order on Monday afternoon, said lawyers connected with the matter. The tribunal has also appointed an interim resolution professional (IRP) and directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against JAL, they said.
The Allahabad bench of the tribunal has also dismissed the merger of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd. A detailed order is yet to be uploaded to the NCLT website.
In September 2018, leading private sector lender ICICI Bank filed an insolvency petition against JAL under section 7 of IBC. Besides, the country’s biggest lender SBI had approached NCLT against JAL, claiming a total default of Rs 6,893.15 crore as of September 15, 2022.
Jaiprakash Associates was part of the Reserve Bank of India’s list of 26 big loan defaulters to commercial banks for initiating bankruptcy proceedings in August 2017.
Also See: NCLAT asks ICICI to consider OTS proposal in Jaiprakash Associates case
