The flagship company of the Jaypee Group, Jaiprakash Associates, has defaulted on loans totaling Rs 4,059 crore, including both the principal and interest. Jaiprakash Associates Ltd (JAL) claimed in a regulatory filing that the business missed payments of principal and interest of Rs 1,713 crore and Rs 2,346 crore on December 31.
The loans pertained to various banks and the nature of obligation is fund based working capital, non-fund based working capital, term loans and FCCB (foreign currency convertible bonds).
JAL was the subject of an insolvency petition filed by ICICI Bank in September 2018, but the National Company Law Tribunal's Allahabad bench is still considering the case (NCLT).
The country's biggest lender SBI had in September this year moved the NCLT against JAL, claiming a total default of Rs 6,893.15 crore as on September 15, 2022.
As part of its goal to reduce debt, JAL and its group companies announced last month that they will sell their remaining cement assets to Dalmia Bharat Ltd for an enterprise value of Rs 5,666 crore and depart the industry.
Earlier, as part of its debt resolution exercise, JAL had sold more than 20 million tonnes per annum cement capacity to Aditya Birla group firm UltraTech Cement between 2014 and 2017.
In 2015, Jaypee group had sold its controlling stake of more than 2 million tonnes cement capacity to Dalmia Group. JAL's Executive Chairman Manoj Gaur had said the company has been taking steps to reduce its debt and repay lenders. "In order to repay the loans of lenders and concentrate in its other core areas of working, JAL has decided to divest from cement business completely with the sale of cement capacity of 9.4 million tonnes per annum in favour of Dalmia Cement (Bharat) Ltd," he had said.