Construction firm Jaiprakash Associates has defaulted on payments to lenders to the tune of Rs 2,897 crore on February 28. The company has Rs 1,544 crore of interest overdues and Rs 1,353 crore to lenders, according to a statement issued to bourses.
Lenders to Jaipraksh Associates, the flagship company in the group, include ICICI Bank, Axis Bank, IDBI Bank, Canara Bank and Bank of Baroda. The default is on obligations such as fund-based working capital, non-fund-based working capital, term loans and FCCB. In total, there are about 32 banks which have exposure to Jaiprakash Associates.
The company has a total outstanding debt of Rs 27,000 crore to creditors. In September 2018, ICICI Bank, the lead lender, had filed an insolvency petition against JP Associates before the Allahabad Bench of the National Company Law Tribunal. The lenders have been trying to restructure the debt outside IBC but this has not been successful so far.
According to sources, lenders may push for resolution through NCLT route at this stage.