Jaiprakash Associates Debt Transferred to NARCL Amid Insolvency Proceedings

A consortium of lenders has transferred their loans from Jaiprakash Associates Ltd to the National Asset Reconstruction Company Ltd amidst insolvency proceedings. The insolvency process follows the National Company Law Tribunal's directive. Bids are invited to acquire JAL through this process. Bhuvan Madan serves as the resolution professional.

Jaiprakash Associates Ltd., currently navigating insolvency proceedings, witnessed a significant development as lenders transferred outstanding loans to the National Asset Reconstruction Company Ltd (NARCL) on Wednesday.

In a regulatory filing, JAL disclosed that lenders, including SBI, ICICI Bank, and others, shifted their debt and related financial assets with securities, shares pledge, and guarantees to NARCL. While the total debt amount remains undisclosed, earlier reports indicated loans amounting to Rs 55,493.43 crore.

Under the Insolvency and Bankruptcy Code, 2016, JAL is engaging in a corporate insolvency resolution process. Bhuvan Madan is the designated resolution professional, and bids are now invited to acquire JAL, a key entity of the Jaypee Group involved in sectors like cement, power, and real estate.

(With inputs from agencies.)