InvestorQ : Now that Jaiprakash Power has restructured its debt, what are the next steps for the company?
Moii Chavate made post

Now that Jaiprakash Power has restructured its debt, what are the next steps for the company?

Answer
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Mitali Bhutta answered.
8 months ago


You may have read that the lenders to Jaiprakash Power Ventures led by ICICI Bank have restructured chunk of the company’s debt into equity or convertible instruments. Consequently, the lenders have withdrawn their plea for initiating insolvency proceedings against the company from NCLT. Even the outstanding debt of JP Power has fallen as a result of the restructuring has fallen from Rs.11,282 crore to Rs.6,000 crore. The company is now poised to report profits in the fiscal year 2020-21 as the annual interest burden of JP Power will reduce from Rs.1580 crore to Rs.570 crore.

Under the debt restructuring plan, the company converted part of a loan from JSW Group into equity shares at ₹10 each. Post the restructuring, promoters Jaiprakash Associates will have a 24% stake in the entity, while banks and financial institutions will own 42.64%. In addition, the FCCB holders will have an 8.36% stake and JSW Group will own a 5.1% stake in the company. JP Power Ventures has three operational plants with a total power generating capacity of 2,220 MW.