ICICI Bank today said it concluded the sale of Jaiprakash Associates (JAL) and Jaypee Cement Corporation (JCCL) to UltraTech Cement for Rs 16,189 crore.
"With this sale, part of the debt of JAL and JCCL has been transferred from a stressed account to a AAA-rated company," ICICI Bank said in a statement.
Chanda Kochhar, MD & CEO, ICICI Bank said, “I welcome the completion of the sale of the cement business of Jaiprakash Associates (JAL) and Jaypee Cement Corporation Limited (JCCL) to UltraTech Cement. ICICI Bank, as the lead bank, has played a significant role in this sale process."
According to the Jaiprakash Associates' annual report for the year ended March 31, 2016, its indebtedness stood at Rs 31,187 crore.
A large part of this debt would move out of the company.
Lenders to Jaypee Infratech, a subsidiary of Jaiprakash Associates, have already decided to admit the company to the National Company Law Tribunal to invoke the insolvency and bankruptcy code.
This is the largest asset resolution in the country so far and I hope that this landmark transaction will pave the way for more such resolutions. It is also heartening to note that this is the largest transaction in India’s cement industry, thus far, Kochhar added.
The decision to sell the cement business to reduce JAL and JCCL’s debt was taken more than a year ago. ICICI Securities was then appointed to manage the sale process.
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