 "Banks eye control of Jaiprakash Associates in debt-for-equity swap: Sources")
Jaiprakash Associates Ltd and its trusts will transfer 189 million shares to ICICI Bank Ltd as a part of a debt settlement, a regulatory filing stated on Tuesday (November 14).
The consideration for the transfer will be based on the previous day's closing price on the National Stock Exchange of India (NSE), as mentioned in the notice to exchanges, the release added.
The stock has risen by more than 140 per cent in the last three months, reaching Rs 19.35 per share on November 13 from Rs 8 on August 22.
Currently, JP Associates owes nearly Rs 29,000 crore to key lenders such as the State Bank of India (SBI), ICICI Bank, and IDBI. In October, JP Associates and ICICI Bank were negotiating a loan restructuring plan.
According to a report by The Economic Times (ET), Jaiprakash Associates plans to settle a Rs 10,000-crore debt within two years, pending lender approval of its debt restructuring plan and the release of Rs 600 crore from blocked banking limits. The corporation intends to free up limits, maintain operations, and service the debt due for principal repayment in 2037.
The Jaypee group's debt-ridden flagship, which operates in the hotel, real estate, and construction sectors, received money from 34 banks. Although the debt restructuring plan had already been authorised, ICICI Bank and SBI have halted its implementation by taking the matter to the National Company Law Tribunal (NCLT) and requesting insolvency proceedings against the company, the report added.
