Debt-laden Jaiprakash Power will convert part of its outstanding loans to banks and financial institutions by issue of 0.01 per cent Cumulative Compulsory Convertible Preference Shares (CCPSs) of the company worth Rs 3,840.53 crore, in one or more tranches.
The company, in a disclosure to the exchanges, said it had submitted a debt resolution/restructuring plan to its lenders, which was approved in April.
As envisaged in the resolution plan, the firm is in the process of issuing CCPSs (of 0.01 per cent, to be converted in line with prevailing guidelines) to lenders, proportionate to the part of debt, it said.
JP Power further informed that ICICI Bank has filed an application in the National Company Law Tribunal (NCLT), Ahmedabad, and next date of hearing is on June 19. “Some of the lenders have advised the company to pay back dues owed to them entirely, or else they will be constrained to take legal action, including that the under the provisions of SARFAESI Act.
The company has suitably responded to the same and as per a discussion on implementation of the resolution plan, the concerned lenders are in the process of withdrawing legal notices,” it said.
JP Power also announced its results for the fourth quarter and fiscal year ending March 31, 2019. For FY19, the company posted a loss of Rs 377.88 crore and its revenue was Rs 3,874 crore.
The company’s Prayagraj thermal power plant in Uttar Pradesh was declared ‘resolved’ after Resurgent Ventures — a joint venture of Tata Power and ICICI Ventures — bought it, earlier this year.
For another unit in the state — Sangam Power — JP Power has moved the UP State Electricity Regulatory Commission for the release of bank guarantee, and payment of claim totalling Rs 1,157.22 crore. The claims have arisen because of the state’s delay in providing land to the company for the plant, thereby delaying construction of the unit.