Bad news for Jaypee group, the company reached the verge of bankruptcy, did not repay the loan of 4059 crores

Bank Loan Defaulters JP Associates: Bad news is coming out from Jaiprakash Group ie JP Group. Jaiprakash Associates Ltd, the flagship company of Jaypee Group, has been declared a bank loan defaulter. It is being told that Jaiprakash Associates has not repaid the loan of Rs 4,059 crore. Due to which it has been declared default by many banks. This includes both the amount of principal and interest.

Know what JP Associates said

According to media reports, Jaiprakash Associates Limited (JAL) has informed in one of its regulatory filings that the company had defaulted on repayment of principal amount of Rs 1,713 crore and interest of Rs 2,346 crore on December 31. While the loans are related to different banks.

what is the whole matter

Try to understand this matter from the beginning. In September 2018, ICICI Bank filed an insolvency petition against Jaiprakash Associates Limited. But the matter is still pending with the Allahabad Bench of the National Company Law Tribunal (NCLT). The country’s largest lender State Bank of India (SBI Bank) approached the NCLT against JAL in September 2022 this year. In this, as on the date of 15 September 2022, a total default of Rs 6,893.15 crore was claimed.

Cement assets sold to Dalmia

Jaiprakash Associates Limited and its group companies had announced the sale of its remaining cement assets to Dalmia Bharat Limited in December 2022 last year. Sold it at an enterprise value of Rs 5,666 crore. To reduce the dues, the company is trying to come out of this sector. Earlier, as part of the debt resolution process, JAL sold over 20 million tonnes of cement capacity annually to Aditya Birla Group company UltraTech Cement between 2014 and 2017.

The company sold its stake

Jaypee Group sold a controlling stake of over 2 million tonnes of cement capacity to Dalmia Group in the year 2015. In this regard, JAL’s Executive Chairman Manoj Gaur had said that the company is taking steps to reduce its debt and repay the lenders. Jaypee Group companies had said that the disinvestment included cement plants with a total capacity of 9.4 million tonnes, clinker assets with a capacity of 6.7 million tonnes and a thermal power plant with a capacity of 280 MW.

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