Banks to discuss using SDR on Jaiprakash Associates

He said the Joint Lenders’ Forum (JLF) will be meeting soon to take a call on invoking the conditions of SDR. Under the SDR route, banks can take majority control of the debt-laden company and scout for a strategic investor.

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There were reports that ICICI Bank has decided to convert its debt into equity under the SDR route.

Banks reportedly decided to invoke the SDR provisions after uncertainties over a Rs 15,900-crore deal in which Aditya Birla Group company UltraTech Cement was to take over JP’s cement assets.

UltraTech and Jaiprakash Associates had signed an agreement on March 31 for the sale of the cement division, which has a capacity of 21.2 million tonnes in factories located across five states.

The Jaypee group companies has on a consolidated basis failed to repay Rs 2,905.6 crore in principal amount to banks and another Rs 1,558.93 crore in interest payments, it said in a stock exchange filing.

“Overdue principal repayment of loans borrowings … outstanding on March 31, 2016 wherein the period of delay ranges from 1 day to 269 days” include debt of Rs 2,183.17 crore on Jaiprakash Associates, Rs 688.48 crore on Jaiprakash Power Ventures and Rs 33.95 crore on Jaypee Cement, as per latest disclosures.