Jaiprakash Associates Proposes Rs 16,200-Crore Settlement Amid Insolvency Appeal
The company's total debt, as claimed by the bankers, stands at around Rs 26,000 crore.
Jaiprakash Associates Ltd., currently embroiled in insolvency proceedings, has proposed a one-time settlement to its creditors. However, the bankers remain skeptical about the company's intentions. The National Company Law Appellate Tribunal in New Delhi is presently hearing an appeal against the company's admission into insolvency.
The matter will next be heard by the NCLAT on July 3.
Sunil Kumar Sharma, a suspended board member of Jaiprakash Associates, who has filed this appeal, submitted that the company had a plan to address its debts earlier. It has also been submitted that if the one-time settlement route is accepted, Jaiprakash Associates is proposing to pay an upfront amount of Rs 200 crore, with an assurance to settle Rs 16,000 crore over the next 18 weeks.
The bankers have pointed out that the insolvency petition was filed back in 2017 and admitted on Sept. 6, 2018. They argued that Jaiprakash Associates had ample time to make payments or propose an OTS, but instead dragged the proceedings under various pretexts.
The total debt, as claimed by the bankers, stands at around Rs 26,000 crore, and the banks contend that if the company was serious about settling, it should have made a substantial payment to facilitate negotiations on the OTS.
The bench has suggested that the bankers consider the one-time settlement offer before further proceedings.
