Rs 53,000 Crore Loan Default by Jaiprakash Associates, Check Bank Wise Data Here

Jaiprakash Associates Ltd. is facing significant financial challenges and currently undergoing insolvency proceedings. The company took huge amount of loans from banks but now is not able to repay those loans. The company took around Rs.53,000 crore but now it has offered banks to settle the loan for only Rs.16,200 crore. The company has proposed a one-time settlement to banks to clear off its debt. The proposal includes an upfront payment of Rs 200 crore and an assurance to settle Rs 16,000 crore over the next 18 weeks. But the banks have rejected this OTS offer from JP Associates.

Bank Loan Claims and Settlement Proposal

• Banks and Other Creditor Claims: The total claims admitted against Jaiprakash Associates amount to Rs 51,914 crore, with homebuyers submitting claims worth Rs 2,630 crore.
• One-Time Settlement Proposal: The company has proposed to pay Rs 200 crore upfront and settle Rs 16,000 crore over the next 18 weeks as part of a one-time settlement.

Major Creditors and Insolvency Proceedings

• Major Creditors: Major creditors include State Bank of India, ICICI Bank Ltd., IDBI Bank Ltd., and Life Insurance Corp. Bank wise claimed amount is given below. You can check which bank sanctioned how much loan amount to Jaiprakash Associates.

• Insolvency Proceedings: The National Company Law Appellate Tribunal is currently hearing an appeal against the company’s admission into insolvency, with the next hearing scheduled for July 3.

Total Debt and Legal Proceedings

The company is presently involved in insolvency proceedings. The case is scheduled to be heard by the National Company Law Appellate Tribunal on July 3. Sunil Kumar Sharma, a suspended board member of Jaiprakash Associates, has filed the appeal. He stated that the company had previously devised a plan to manage its debts.