Jaypee-UltraTech’s Rs 16,189-crore Deal Concludes
Lenders to Jaiprakash Associated (JAL), led by ICICI Bank, concluded the largest bad debt resolution in history with the sale of the cement business of JAL and its associate Jaypee Cement Corporation (JCCL) to UltraTech Cement for an enterprise value of Rs 16,189 crore. With this deal, bad debts worth Rs 12,000 crore get transferred from a defaulting company to a triple A-rated company, helping banks bring down their NPAs. The sale of the cement business is part of an overall three-part restructuring of JAL. The other two legs of the exercise involve monetising the company’s land holdings and restructuring the balance business, which include an EPC division, hospitals and hotels. However, unlike the cement business, which has overnight become a standard asset from an NPA, the other businesses can be upgraded only after a year.
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