Banks partially accept Jaypee Infra's plan to pare debt

In a relief to Jaypee Infratech, the debt-ridden arm of the Jaypee Group got a thumbs-up from lenders for part of its debt-repayment proposal at a recent meeting held with banks, sources have told CNBC-TV18. The lenders have approved the plan to securitise land parcels across Yamuna Expressway for Rs 2,000 crore, the proceeds of which Jaypee Infra will use to service its Rs 4,500-crore debt.Banks, however, are reluctant to accept land in lieu of debt. They may conduct a vaibility study to see the company's cashflow-generation capacity and level of sustainable debt.Jaypee Infratech is already considered an NPA by 10 out of 12 banks.Watch video for more...