Lenders set to drag debt-ridden JP Associates to insolvency tribunal

Jaiprakash Associates, which is the flagship company of the crisis-hit Jaypee group, is into construction, cement, real estate, hospitality and power businesses

With the Reserve Bank of India (RBI) rejecting the plea for starting insolvency proceedings against debt-ridden JP Associates, lenders will take the ailing company to the National Company Law Tribunal (NCLT).

Bankers said ICICI Bank, lead lender for the ailing JP Associates, had approached the RBI to make an exception in this case as banks had already finalised a restructuring plan and also partly implemented it.

Given the Supreme Court directive in JP Infratech case, the RBI has preferred not to accede to the request. The process of divesting the cement business is almost through. The restructuring plan for real estate and