Jaiprakash Power Ventures to exit insolvency proceedings; stock rises ~5%

Given that the earlier petition is yet to be admitted to NCLT, ICICI bank will be allowed to withdraw it, ET reported.

Jan 14, 2020 05:01 IST India Infoline News Service

Jaiprakash Power Ventures Limited

ICICI Bank, which had earlier filed for initiating proceedings under the Insolvency and Bankruptcy Code against Jaiprakash Power Ventures in 2018, last Friday moved an application before the Ahmedabad bench of National Company Law Tribunal (NCLT) for its withdrawal.

Jaiprakash Power Ventures' lenders' consortium led by ICICI Bank has managed to restructure the company's debt by converting its equity or convertible instruments and have approached the NCLT to withdraw their application for starting of bankruptcy proceedings.

Given that the earlier petition is yet to be admitted, the bank will be allowed to withdraw it, ET reported.

The outstanding debt of the Jaiprakash Associates group company has reduced to less than Rs6,000cr, from over Rs11,000cr. The terms involve an interest writeback of ~Rs2,000cr that will help the company report a net profit this fiscal, ET added.

Jaiprakash Power Ventures Ltd is currently trading at Rs1.95 up by Rs0.09 or 4.84% from its previous closing of Rs1.86 on the BSE.
The scrip opened at Rs1.95 and has touched a high and low of Rs1.95 and Rs1.95 respectively. So far 12,72,556 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs1,115.26cr.


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