NEW DELHI: Jaiprakash Associates Ltd (JAL) has offered a revised one-time settlement, or OTS, which includes sale of its assets to Dalmia Cement and Rs 500-crore upfront deposit, to its lenders.
The debt-ridden construction and infrastructure company – which was admitted for insolvency resolution proceedings earlier this month – informed the National Company Law Appellate Tribunal (NCLAT) on Monday that it has revised its offer after the appellate tribunal asked it to consider a higher amount of deposit.
JAL has proposed an additional deposit of Rs 300 crore besides the Rs 200 crore already furnished, its counsel Abhishek Manu Singhvi told the tribunal in a submission. It will deposit another Rs 150 crore arranged through its internal sources within 12 weeks of the OTS approval, he said.
The company has also expedited the schedule for redemption of optionally convertible debentures, which covers Rs 6,000 crore.
Regarding the asset sale to Dalmia Cement, Singhvi said the latter has offered Rs 2,150 crore to take over JAL’s cement business and that the entire sale proceeds will go to lenders.
However, the asset sale is stuck as the lenders need to issue a release document for the sale to conclude successfully.
