Jaiprakash Associates board to meet on October 7, to consider debt recast

Amid the ongoing rejig exercise of Jaypee Group, the Jaiprakash Associates (JPA) board is meeting on October 7 to discuss the company's debt recast strategy.

The company, which is listed on the RBI's second defaulters list, has time until December 13 to resolve the case failing which it will end up in the National Company Law Tribunal (NCLT). This is why, there is an urgency in the resolution of JPA's account that has a big debt with some high street bankers also in the fray.

Jaiprakash's board meeting is mainly to approve and take on the plan of consideration of debt restructuring that has been approved by the joint lender's forum (JLF).

The company, which has over Rs 30,000 crore of debt, has plans to divide the debt amount into three halves. Of the three parts, about Rs 10,000 crores will directly get transferred to UltraTech, post the completion of the cement sale business.

About Rs 13,00 crore of debt will be transferred to a special purpose vehicle which will host all of the groups' land holdings, which will be monetised by the lenders in due course as and when the plan appears.

And the remaining debt, that is Rs 6,ooo-7,000 crore of debt, will be treated as sustainable and will remain with the company's residual business which includes EPC, power, hospital and sports business along with some other businesses that will continue to sit on the company's books.

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