Jaiprakash Associates (JAL) on Friday said its board will meet on October 7 to consider the company’s debt restructuring proposal approved by the joint lenders’ forum (JLF). “The meeting of board of directors will be held on October 7, 2017, to consider the recommendations of restructuring committee and audit committee to complete the debt reorganisation and structuring process approved by the joint lenders’ forum of the company,” it said in a regulatory filing.
The company was named in the second list of defaulters sent to banks by the Reserve Bank of India (RBI), and lenders have till December 13 to resolve its stress. Failing to do so will lead to the company being referred to the National Company Law Tribunal (NCLT).
In September last year, Jaiprakash Associates had received shareholders’ approval to allow conversion of its debt into equity with 88% of votes in favour of the conversion. In a regulatory filing, the company had said shareholders approved the “option to convert loans, debentures or other borrowings/debt of the company into equity shares/securities of the company”.
JAL owes more than Rs 30,000 crore to a consortium of lenders led by ICICI Bank and the company had said it failed to meet its debt and interest payment commitments. In a bid to pare debt, the firm had inked a deal with Ultratech Cement, which agreed to acquire its cement plants in Madhya Pradesh, Uttar Pradesh, Uttarakhand, Himachal Pradesh and Andhra Pradesh with total capacity of 21.20 million tonne per annum for `16,189 crore.
The deal was sealed in June this year, leading to a substantial reduction in Jaiprakash Associates’ debt. ICICI Bank managing director and CEO Chanda Kochhar had said in a statement that with this sale, part of the debt of JAL and Jaypee Cement Corporation has been transferred from a stressed account to a AAA-rated company.