Lenders in talks to sell debt-laden Jaiprakash Associates loans to NARCL

Delay of over 5 years in debt resolution via IBC prompts the move

The lenders to debt-laden Jaiprakash Associates are in talks to sell part of their loans to National Asset Reconstruction Company Ltd (NARCL), even as petitions filed by ICICI Bank and State Bank of India for a debt resolution under the Insolvency and Bankruptcy Code, 2016, are still pending before the Allahabad Bench of the National Company Law Tribunal (NCLT).

ICICI Bank filed its plea in September 2018, while SBI moved the NCLT in September last year.

The massive delay in debt resolution in the NCLT has prompted the lenders to initiate negotiations for selling part of the loans to NARCL,