Amid reports that lenders may take majority control of the debt-laden Jaiprakash Associates, a senior SBI official today said it has classified the account as an NPA and lenders will soon meet to take a call on invoking Strategic Debt Restructuring provisions.
“Jaypee became a non-performing asset some time back,” the senior official said, adding the country’s largest lender has an exposure of Rs 7,000 crore to the account.
The official added the Joint Lenders’ Forum (JLF) will be meeting soon to take a call on invoking the conditions of SDR, which involves banks taking majority control of the company.
The comments come amid news reports that the JLF, led by private sector lender ICICI Bank has decided to convert its debt into majority ownership under the SDR route.
The lenders have also reportedly decided to invoke the provisions at a meeting on Tuesday after uncertainties over a Rs 15,900 crore deal in which Aditya Birla Group company Ultratech Cement was to take over JP’s cement assets.
UltraTech and Jaiprakash Associates had signed an agreement on March 31 for the sale of the cement division, which has a capacity of 21.2 million tonnes in factories located across five states.
Jaiprakash Associates had a consolidated debt of Rs 58,250 crore as of March 31.