Jaiprakash Associates today said its board will meet tomorrow to consider the recommendations of audit committee on debt restructuring process approved by the Joint Lenders Forum.
The flagship firm of debt-ridden Jaypee group is a diversified infrastructure company engaged in segments such as engineering, construction/real estate development, manufacture /marketing of cement, hospitality and sports management.
In a BSE filing, it said the board meeting will be held on October 7 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".
Last month, Jaiprakash Associates had said it has taken various steps to reduce its debt, including sale of cement plants.
To revive its business operations and repay debt, the company divested a substantial portion of its cement business with a capacity of 17.2 million tonnes per annum to UltraTech Cement at an enterprise value of Rs 16,189 crore.
"The transaction stood consummated on June 29, 2017 and that has resulted in reduction of debt of approx Rs 14,000 crore, including repayment of outstanding loans to banks/FIs, part payment to holders of FCCBs (foreign currency convertible bonds), repayment of almost all outstanding fixed deposits and interest thereon and other priority payments," it had said.
The company also plans to sell entire 74 per cent stake in Bhilai Jaypee Cement Ltd to Orient Cement Ltd at a total enterprise value of Rs 1,450 crore, which is expected to be consummated by 31 December 2017.
Bhilai Jaypee Cement owns 1.1 million tonnes per annum clinker plant at Satna in MP and 2.2 million tonnes per annum cement grinding unit at Bhilai, Chhattisgarh.
Jaypee group is facing a debt crisis and its group firm Jaypee Infratech has been taken over by a National Company Law Tribunal (NCLT)-appointed IRP for recovery of bad loans.
The group is facing huge protest from home buyers because of significant delays in delivery of projects.
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