New Delhi : Jaiprakash Associates’ board has approved the transfer of certain assets and liabilities, including debt of over Rs 11,834 crore, to its subsidiary Jaypee Infrastructure Development Ltd as part of its efforts to cut the overall borrowing of the company. The company had called a board meeting to consider the recommendations of the audit committee on the debt restructuring process approved by the Joint Lenders’ Forum.
The flagship firm of the debt-ridden Jaypee group is a diversified infrastructure company engaged in engineering, construction or real estate development, manufacture or marketing of cement, hospitality and sports management. Last month, Jaiprakash Associates had said it had taken various steps to reduce its debt, including sale of its cement plants.
To revive its business operations and repay the debt, the company divested a substantial portion of its cement business, with a capacity of 17.2 million tonnes per annum, to UltraTech Cement at an enterprise value of Rs 16,189 crore. The company also plans to sell its entire 74 per cent stake in Bhilai Jaypee Cement to Orient Cement at Rs 1,450 crore.