Jaiprakash Power to issue preferential shares of Rs 3,840 crore

The company in a disclosure to the exchanges said it had submitted a debt resolution/ restructuring plan to its lenders. The plan was approved in April 2019

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