Jaiprakash Associates defaults on payment of Rs 4,258 crore loan
Jaiprakash Associates Ltd (JAL), the flagship company of the crisis-hit Jaypee Group, has defaulted on loans amounting to Rs 4,258 crore, including both principal and interest, as on 31 October 2023. The defaulted amount includes Rs 2,525 crore is interest amount while Rs 1,733 crore is principal.
The company has total borrowings (including interest) of Rs.29,477 Crore repayable by 2037.
Earlier in July this year, Jaiprakash Associates had defaulted on a payment of Rs 4,044 crore on 30 June 2023. Out of Rs 4,044 crore, the principal amount is Rs 1,660 crore and the interest is Rs 2,384 crore. The amount is owed to 22 banks, including Axis Bank, Bank of Maharashtra, Bank of India, Canara Bank, and State Bank of India.
The company has said that it is taking tangible steps to reduce its borrowings, and that the debt will be almost wiped out after the proposed divestment of its cement business and the restructuring under consideration.
The company has also said that under the direction of the Supreme Court, it has deposited a sum of Rs 750 crore in the matter relating to a litigation of home-buyers with Jaypee Infratech Limited (JIL). However, the banks of JAL have been contesting that this amount should be refunded to JAL to enable it to meet its obligations to its lenders. The Supreme Court has finally decided the issue in favour of JAL, and the National Company Law Appellate Tribunal (NCLAT) has vide its order dated 28 August 2023 decided that out of the said deposit, JAL shall be returned Rs 100.48 crore along with interest.
Meanwhile, ICICI Bank has approached the National Company Law Tribunal (NCLT) in Allahabad against the company under section 7 of the Insolvency & Bankruptcy Code 2016. JAL has objected to the move, and the matter is pending to be decided simultaneously with the Scheme of Arrangement for transfer of Real Estate to the SPV to be sanctioned by the NCLT.
Also Read: Jaiprakash Associates defaults on repayment of Rs 4,044 crore loan
