Crisis-hit Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans worth Rs 4,616 crore, including principal and interest amount.
In a regulatory filing late on Monday, Jaiprakash Associates Ltd (JAL) has informed that the company on April 30, defaulted on repayments of a principal amount of Rs 1,751 crore and interest of Rs 2,865 crore.
"Total borrowing (including interest) of the company is Rs 29,805 crore, repayable by 2037, against which only Rs 4,616 crore is overdue as on April 30, 2024," JAL said.
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 FCCBs (foreign currency convertible bonds).
Out of the total borrowing of Rs 29,805 crore, the company said Rs 18,955 crore will be transferred to the proposed Special Purpose Vehicle (SPV). For this, a Scheme of Arrangement duly approved by all the stakeholders, is pending for sanction of the National Company Law Tribunal (NCLT). The entire loan in any case is under restructuring, the company said.
"As a responsible borrower, the company has been taking tangible steps to reduce the borrowings. Post the proposed divestment of cement business and the restructuring under consideration, the borrowing will get almost to Nil, upon the implementation of revised restructuring plan," JAL said.
Further, the company said that 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.
"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," the filing said.
JAL said that the State Bank of India has also filed a petition under section 7 of Insolvency & Bankruptcy Code 2016, against the company, before NCLT Allahabad. In September 2018, ICICI Bank filed an insolvency petition against JAL.
SBI had also moved NCLT against JAL, claiming a total default of Rs 6,893.15 crore as of September 15, 2022. Jaiprakash Associates has been selling its cement plants to reduce debt.
In a case related to its erstwhile subsidiary Jaypee Infratech Ltd (JIL), Mumbai-based realty firm Suraksha Group had in March 2023 got the approval from NCLT for its bid to acquire JIL and complete around 20,000 apartments in Noida. However, many parties have approached the National Company Law Appellate Tribunal (NCLAT) against the NCLT order.
