Banks object to deal between Jaypee Associates and ICICI- CMB College

Banks object to deal between Jaypee Associates and ICICI

A group of banks is upset over the settlement deal between Jay Prakash Associates Ltd and ICICI Bank, a company of the Jaypee Group. Banks that have given loans to JLL have written to ICICI Bank asking how the bank can do this. How can ICICI negotiate a share transfer in lieu of a given loan when others in the consortium are waiting for a solution?

As per the deal, Jaiprakash Associates Ltd (JAL), the parent company of the embattled Jaypee Group, will give 7.71 per cent stake in the company to ICICI Bank to repay part of the outstanding loan, valued at Rs. 366 crores. Current market price.

Let us tell you that Jai Prakash Associates Limited owes a total of ₹ 29,272 crore to a group of 32 banks. The company was one of the 26 defaulters that the RBI directed to go into insolvency proceedings in 2017.

How much is due from ICICI?

Following this, ICICI filed an insolvency petition against the company before the Allahabad Bench of the National Company Law Tribunal in 2018. That application has not yet been accepted. A banker associated with this account said. ICICI is the largest creditor with outstanding loans of ₹3,000 crore, followed by IDBI Bank with ₹1,836 crore.

Also Read: A JP Group company has invested Rs. 360 crore shares transferred, shares touch new highs

A banker involved in the recovery said, “This action by ICICI Bank came as a surprise to the lenders, as we were all struggling to get something out of this account. Technically speaking, ICICI Bank was sanctioned by the RBI. Any settlement will go ahead.” Cannot increase without giving because this bankruptcy was initiated by the central bank.

Last week, JAL said it had outstanding debt of ₹4,258 crore by October, while it expects to reduce debt by ₹18,682 crore due to the transfer of some fixed assets after the NCLT’s approval.

ICICI has not discussed with other creditors

It is unclear how the banks that gave loans to JLL got the authority to sell these shares to ICICI. No such discussion took place in the Joint Landers’ Forum (JLF). So, many banks have asked ICICI Bank how it can do this without discussing it with others.

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