New Delhi, Nov 24 (PTI) Debt-ridden Jaiprakash Associateshas fixed November 28 as the effective date for restructuringof its USD 150 million foreign currency convertible bonds(FCCBs) maturing this year.
Recently, the company's finance committee approvedcashless exchange of existing FCCBs due in 2017 with thosematuring in 2020-21. Earlier this month, the RBI had approvedthe proposal.
In a filing to the BSE today, Jaypee Group's flagshipfirm Jaiprakash Associates said "the restructuring effectivedate is expected to occur on November 28, 2017."The exchange bonds would be allocated to the holders ofthe existing bonds on the record date, which is three businessdays prior to the restructuring effective date, it added.
In June, Jaiprakash Associates had said that bondholdersagreed to exchange outstanding existing FCCBs worth USD 150million. The bonds were issued in September 2012 with maturityin 2017 and a coupon rate of 5.75 per cent.
As per the proposal, the bondholders agreed to exchangetheir current bonds with FCCBs worth USD 38.64 million bearingthe same coupon rate with maturity in 2021 and amortisingbonds worth USD 81.69 million with coupon rate of 4.76 percent and maturity in 2020.
Jaiprakash Associates will issue 1,10,400 Series A bondshaving principal value of USD 350 each carrying a coupon rateof 5.75 per cent per annum with maturity on September 30,2021. It will also issue 1,10,400 Series B bonds havingprincipal value of USD 740 each at a coupon rate of 4.76 percent per annum and maturity date of September 30, 2020.
The company will pay USD 27.6 million upfront.
Both series of the bonds would be listed on SingaporeStock Exchange Securities Trading Ltd.
Jaiprakash Associates, a diversified infrastructurecompany engaged in segments like engineering, construction andreal estate development, cement manufacturing, hospitality andsports management, is selling its assets to repay debt.
Jaypee Group firm Jaypee Infratech has been taken over bya National Company Law Tribunal (NCLT)-appointed IRP(Insolvency Resolution Professional) for recovery of badloans. The group is facing huge protest from home buyers dueto significant delays in delivery of projects. PTI MJHABM.
This is unedited, unformatted feed from the Press Trust of India wire.