JSW agreed to restructure Rs.752 Cr debt owed by JPVL to it

0 12,794

Mumbai: JSW Energy on Thursday announced that it has entered into an agreement with Jaiprakash Power Ventures Ltd (JPVL) on 2nd January, 2020 to re-structure the principal outstanding amount of Rs.751.77 crore, owed by JPVL to the Company.

According to the terms of the agreement an amount of Rs.351.77 crore to be converted into equity shares of JPVL at par value of Rs.10 each.  Out of the balance outstanding principal amount of Rs.400 crore, Rs.280 crore to be written off and Rs.120 crore to continue as debt to be paid by JPVL to the Company, quarterly on priority basis, out of the available cash flows after JPVL has paid 10% of the re-structured sustainable debt to its secured lenders.

Issuing a statement JSW Energy said that, it has already made a provision for Rs.574.19 crore in quarter ended 31st March, 2018 for the above. Further, JPVL and the JSW Energy have agreed to waive their respective rights to receive any payments from each other and unconditionally release each other from all liabilities in relation to the Securities Purchase Agreement dated 16th November, 2014 for transfer of Karcham and Baspa hydro assets from JPVL to the Company. This will result in reversal of an amount of Rs.177.48 crore of liabilities payable to JPVL in the Company’s books.

Leave A Reply

Your email address will not be published.