The bankers have initiated the Strategic Debt Restructuring (SDR) process against the entire Jaypee Group, specifically targeting its flagship company, Jaiprakash Associates. On Saturday, they announced that a crucial meeting of the board of directors has been scheduled to take place on Monday, focusing on the development progress and various other pressing issues, including the group's destitution plans.
This significant development follows a troubling drop in the group's cement sales, with Ultratech acquiring a substantial portion for Rs 15,000 crore after the invocation of SDR. Jaiprakash Associates, in its communication to the Bombay Stock Exchange, stated, "A meeting of the Board of Directors of the company is organised in a very short time period on 4 July 2016, inter alia, to analyze the progress of destitution plans and related issues.”
According to the company, the Joint Bankers Forum convened to review the progress on the Corrective Action Plan, which was approved back in January 2015. The forum agreed to invoke SDR with 28 June 2016 serving as the reference date, pending further approvals from the bankers.
Jaiprakash Associates currently owes a whopping Rs 30,000 crore to a consortium of banks led by ICICI Bank, which presents a formidable challenge for the promoters as they strive to maintain business continuity amidst declining performance. As of March 2016, the consolidated debt of the Jaypee Group stood at Rs 58,250 crore.