Jaiprakash Associates plans to restructure bonds worth $120 million
Crisis-hit Jaiprakash Associates, which operates in cement and construction businesses, said on Saturday that around 92 percent of bondholders have approved the restructuring of $120 million worth of foreign currency convertible bonds (FCCBs) issued by the company have been issued and must be redeemed soon. payments in 2020 and 2021.
In February, the debt-ridden company had announced plans to restructure these bonds.
On February 27, Jaiprakash Associates informed that the company has signed a non-binding term sheet and related entry agreements with an aggregate of approximately 70 percent of the holders of (i) the FCCBs valued at USD 38,640,000 due September 2021 (Series A Bonds); and (ii) the USD 81,696,000 amortizing FCCBs due September 2020 (Series B Notes).
The agreements contain the key terms of the proposed restructuring of such bonds.
In a filing with regulators on Saturday, the company said more bondholders have given their consent to the bond restructuring by signing an affiliation agreement with the company.
To date, the company said it has executed the non-binding term sheet and related entry agreements with (i) 93.99 percent of the holders (based on outstanding principal amount) of the Series A Notes and (ii) approximately 91 .67 percent of the holders (based on outstanding principal amount) of the Series B bonds.
Cumulatively, 92.57 percent of the collective holders of the Series A Bonds and the Series B Bonds have given their consent.
It is proposed to carry out the restructuring of the bonds through a process whereby the necessary resolutions are adopted by the relevant bondholders and the relevant amendments are made in the existing trust deed in respect of these bonds.
“The restructuring of the debentures will be subject to various approvals, including the approval of the company’s shareholders, the Reserve Bank of India and other statutory and statutory authorities (where required under applicable law),” Jaiprakash Associates said.
In recent years, the company has sold its cement plants to reduce its massive debt.
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First print: March 30, 2024 | 6:06 PM IST