Jaiprakash Associates plans to restructure bonds worth USD 120 million, ET RealEstate

March 30, 2024

NEW DELHI: Crisis-hit Jaiprakash Associates, which is into cement and construction businesses, on Saturday said around 92 per cent of bondholders have given consent for restructuring of foreign currency convertible bonds (FCCBs) worth USD 120 million, which were issued by the company and due for payments in 2020 and 2021. In February, the debt-ridden company had announced plans to restructure these bonds.

On February 27, Jaiprakash Associates informed that the company has executed a non-binding term sheet and related accession agreements with an aggregate of about 70 per cent of the holders of (i) the USD 38,640,000 FCCBs due September 2021 (Series A Bonds); and (ii) the USD 81,696,000 amortising FCCBs due September 2020 (Series B Bonds).

The agreements contain the primary terms of the proposed restructuring of such bonds.

In a regulatory filing on Saturday, the company apprised that more bondholders have accorded their consent to the bond restructuring by signing an accession agreement with the company.

So far, the company said it has executed the non-binding term sheet and related accession agreements with (i) 93.99 per cent of holders (by principal value outstanding) of the Series A Bonds and (ii) about 91.67 per cent of holders (by principal value outstanding) of the Series B Bonds.

Cumulatively, 92.57 per cent of the collective holders of the Series A Bonds and the Series B Bonds have given their consent.

The bonds restructuring is proposed to be implemented through a process, which involves passing of the necessary resolutions by the relevant bondholders and undertaking the relevant amendments to the existing trust deed related to these bonds.

“The bonds restructuring will be subject to various approvals, including the approval of the shareholders of the company, the Reserve Bank of India and other legal and statutory authorities (if required as per applicable law),” Jaiprakash Associates said.

For the last few years, the company has been selling its cement plants to reduce its huge debt.

  • Published On Mar 30, 2024 at 06:00 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer