Debt-ridden Jaiprakash Associates has fixed November 28 as the effective date for restructuring of its USD 150 million foreign currency convertible bonds (FCCBs) maturing this year.
Recently, the company's finance committee approved cashless exchange of existing FCCBs due in 2017 with those maturing in 2020-21. Earlier this month, the RBI had approved the proposal.
In a filing to the BSE today, Jaypee Group's flagship firm Jaiprakash Associates said "the restructuring effective date is expected to occur on November 28, 2017."
The exchange bonds would be allocated to the holders of the existing bonds on the record date, which is three business days prior to the restructuring effective date, it added.
In June, Jaiprakash Associates had said that bondholders agreed to exchange outstanding existing FCCBs worth USD 150 million. The bonds were issued in September 2012 with maturity in 2017 and a coupon rate of 5.75 percent.
As per the proposal, the bondholders agreed to exchange their current bonds with FCCBs worth USD 38.64 million bearing the same coupon rate with maturity in 2021 and amortising bonds worth USD 81.69 million with coupon rate of 4.76 percent and maturity in 2020.
Jaiprakash Associates will issue 1,10,400 Series A bonds having principal value of USD 350 each carrying a coupon rate of 5.75 percent per annum with maturity on September 30, 2021. It will also issue 1,10,400 Series B bonds having principal value of USD 740 each at a coupon rate of 4.76 percent per annum and maturity date of September 30, 2020.
The company will pay USD 27.6 million upfront.
Both series of the bonds would be listed on Singapore Stock Exchange Securities Trading Ltd.
Jaiprakash Associates, a diversified infrastructure company engaged in segments like engineering, construction and real estate development, cement manufacturing, hospitality and sports management, is selling its assets to repay debt.
Jaypee Group firm Jaypee Infratech has been taken over by a National Company Law Tribunal (NCLT)-appointed IRP (Insolvency Resolution Professional) for recovery of bad loans. The group is facing huge protest from home buyers due to significant delays in delivery of projects.