The Joint Lender Forum (JLF) is meeting with JP Associates as they have accepted the debt restructuring deal offered by the company to reach a consensus on the repayment of dues between banks, reports CNBC-TV18.
JP Associates-UltraTech deal has got the National Company Law Tribunal (NCLT) clearance. About Rs 10,000 crore of debt will be transferred to the books of UltraTech and this account will become standard in the books of banks.
The banks also estimate that Rs 6,000 crore debt in the book of JP Associates can be sustainable. As for the remaining debt, banks are willing to accept land in lieu of debt as per the Reserve Bank of India (RBI) guidelines. Banks can monetise the land by selling it off in the next seven or eight years.
A part of the JP Associates’ debt will get restructured and the other part will go for a long-tenured bond. Banks having a large exposure to JP Associates’ loan include ICICI Bank at 27.63 percent, State Bank of India at 11.88 percent, IDBI Bank at 9.78 percent and Punjab National Bank at 4.35 percent.
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