Cash-strapped infrastructure firm Jaiprakash Associates Ltd (JAL) today said it has failed to pay a total of Rs 3.54 crore in interest for NCDs.
The payment was due on May 11, 2016.
"Interest of Rs 35,424,246 that became due for payment on May 11, 2016 in respect of 11.80 per cent Non Convertible Debentures remains unpaid," it said in a BSE filing.
It added that the development may be read in consonance with disclosures on February 28, 2016, February 29, 2016 and July 04, 2016 wherein the Company has informed about the disinvestment initiatives being undertaken to deleverage its balance sheet and improve its cash flows for timely servicing of its debt obligations.
The company is in the process of reducing debt through inking a deal with UltraTech Cement for sale of cement plants in Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand, AP and Karnataka with a total capacity of 18.40 MTPA for Rs 16,500 crore.
JAL on February 28, 2016 had announced the signing of a "binding Memorandum of Understanding (MoU)" with Ultratech for divestment of part of its cement business.
On July 4, JAL had said: "The company has informed that taking note of decision of Joint Lenders Forum of company's Lenders on the invocation of Strategic Debt Restructuring (SDR), subject to approval of Lenders."
In this regard JAL's Board constituted a Committee of Directors to evaluate various options necessitating financial restructuring as may be applicable with evolving guidelines of RBI and Banks to deal with the debt management and take all actions/steps, necessary, by the said Committee, it added.
On February 29, it had said its Board has taken note with approval of the said MOU and that "The company will execute a definitive agreement with Ultratech in this regard in due course. The transaction shall also be subject to receipt of all statutory approvals and necessary compliances.
Disclaimer: No Business Standard Journalist was involved in creation of this content
