NCLT Has Accepted ICICI Bank, SBI’s Insolvency Plea Of JPA

Jaiprakash Associates Limited is a Noida-based Construction company mainly engaged in the business of Engineering & Construction, Manufacturing of Cement, Power, Real Estate Development, Hotel/ Hospitality, Sports, etc. The National Law Court Tribunal has admitted ICICI Bank and State Bank of India’s plea for insolvency against Jaiprakash Associates Limited(JAL).

NCLT Admits Insolvency Plea Against JPA

The National Company Law Tribunal (NCLT) gave its approval on Monday, June 3, for the insolvency petition which was filed by ICICI Bank and State Bank of India (SBI) against Jaiprakash Associates Ltd (JAL). ICICI Bank initially started the insolvency process in 2018, and SBI filled it in 2022 to speed up the resolution.

Jaiprakash Associates owes a principal amount of Rs 17,700 crore, with the total outstanding debt, including interest, standing at Rs 29,361 crore. A group of 22 lenders, led by ICICI Bank, SBI, and IDBI Bank, has a significant exposure to JAL. The admission of the insolvency plea by NCLT marks a significant step towards resolving the debt issue of the company, Jaiprakash Associates. The company’s financial struggles have been ongoing, and this move aims to find a resolution to revive the company or settle its debt.

Other Jaypee Group Companies Facing Issues

The Jaypee Group in particular is facing financial difficulties, with multiple companies under its portfolio, including Jaypee Cement Corporation, currently undergoing insolvency proceedings at the National Company Law Tribunal (NCLT). Additionally, Jaypee Infratech, another group company of the Jaypee group, is also in the middle of these insolvency proceedings. In a recent development, the National Company Law Appellate Tribunal (NCLAT) validated the bid of Mumbai-based Suraksha Group to acquire Jaypee Infratech.

Conclusion: Jaiprakash Associates Ltd’s insolvency plea has been admitted by NCLT, with a principal debt of Rs 17,700 crore and total outstanding debt of Rs 29,361 crore. The company’s financial struggles have been ongoing and other Jaypee Group companies, including Jaypee Cement Corporation, Jaypee Infratech, and Jaiprakash Power, are also facing insolvency proceedings. The stock Jayprakash Associates is currently at its lower circuit band of -10% at Rs.13.35 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.