Jaypee Group’s crisis-hit flagship Jaiprakash Associates Ltd (JAL) will give 7.71 per cent stake, price Rs 366 crore at present market value, within the firm to ICICI Financial institution to clear a part of the excellent mortgage.
In response to sources, ICICI Financial institution has an publicity of round Rs 3,000 crore in JAL, which is in a number of companies together with cement, building, motels and actual property.
In a regulatory submitting, JAL on Tuesday knowledgeable that the corporate has entered right into a settlement settlement with ICICI Financial institution and can switch over Rs 18.93 crore fairness shares to the financial institution.
“…With a view to giving impetus to the Firm’s ongoing efforts to cut back its money owed, the Firm, together with the Trusts holding 18,93,16,992 fairness shares of the Firm, has entered right into a settlement settlement with ICICI Financial institution (the Lender) for switch of the stated shares to the Lender “Jal stated.
JAL inventory value stood at Rs 19.35 per share on the BSE on Monday. At Monday’s value, Rs 18.93 lakh shares are price Rs 366 crore.
It added that the worth/deeming of the shares can be arrived at on the premise of the closing value of the Indian Nationwide Inventory Trade on the day previous the day of precise switch of shares to the lender’s demat account.
Individually, ICICI Financial institution knowledgeable that these shares have been pledged to ICICI Financial institution.
“…In settlement of their fee obligations in respect of the services offered to JAL by ICICI Financial institution, GACL Belief, JEL Belief, JCL Belief and JHL Belief (collectively, the obligors) have agreed to switch their shares within the firm to the financial institution,” ICICI Financial institution stated.
She added that these shares represent 7.71 p.c of the paid-up capital of JAL.
After the settlement with the obligors, ICICI Financial institution stated it could scale back its dues from JAL, to the extent of the worth of the shares transferred to the financial institution, below the settlement settlement.
ICICI Financial institution’s primary publicity to JAL is round Rs 3,000 crore, which has been absolutely offered within the financial institution’s books, sources stated.
Earlier this month, JAL had reported that it had defaulted on loans price Rs 4,258 crore, together with principal and curiosity.
JAL stated that on October 31, the corporate defaulted on fee of principal quantity of Rs 1,733 crore and curiosity of Rs 2,525 crore.
The loans relate to completely different banks and the character of legal responsibility is Fund Primarily based Working Capital, Non Fund Primarily based Working Capital, Time period Loans and FCCB (International Forex Convertible Bonds).
“The corporate’s complete borrowing (together with curiosity) is Rs 29,272 crore, to be repaid by 2037, in opposition to simply Rs 4,258 crore overdue until October 31, 2023,” JAL stated.
Out of the stated borrowing of Rs 29,272 crore, Rs 18,682 crore can be additional lowered on conversion to the proposed Particular Function Car (SPV) for which the scheme of association duly accepted by all stakeholders is awaiting NCLT approval. She added that the complete mortgage is in any case topic to restructuring.
The corporate stated it had taken concrete steps to cut back loans.
“After the proposed liquidation of the cement enterprise and the restructuring into account, borrowing will attain virtually zero when the revised restructuring plan is carried out,” it stated.
JAL additionally stated that ICICI Financial institution had approached NCLT Allahabad on the instructions of the Reserve Financial institution of India (RBI) below Part 7 of the Insolvency and Chapter Code (IBC) 2016 in opposition to the corporate. I objected to this transfer.
“The matter is pending resolution along side the plan of association for switch of properties to the SPV to be accepted by NCLT,” the submitting stated.
In September 2018, ICICI Financial institution filed an insolvency petition in opposition to JAL.
The nation’s largest financial institution has additionally moved the NCLT in opposition to JAL, claiming a complete default of Rs 6,893.15 crore as of September 15, 2022.
Earlier this yr, JAL and its group firms introduced the sale of its remaining cement belongings to Dalmia Bharat Ltd for an enterprise worth of Rs 5,666 crore and exit the sector as a part of its debt discount technique.
As a part of the debt settlement, JAL bought greater than 20 million tonnes each year of cement capability to Aditya Birla Group’s UltraTech Cement between 2014 and 2017.
In a case involving its erstwhile subsidiary Jaypee Infratech Ltd (JIL), Mumbai-based actual property agency Suraksha Group in March obtained NCLT nod for its bid to amass JIL and full round 20,000 flats in Noida.
Nonetheless, a number of events have approached the Nationwide Firm Legislation Appellate Tribunal (NCLAT) in opposition to the NCLT order.
(Solely the title and picture of this report might have been reworked by Enterprise Customary workers; the remainder of the content material is auto-generated from a syndicated feed.)
(Tags for translation)Jaiprakash Associates