Axis Financial institution takes over Jaypee Group’s headquarters


Mumbai: Axis Financial institution Ltd, a lender to Jaypee Infratech Ltd, has taken possession of the debt-laden firm’s headquarters in Noida, stated three individuals acquainted with the event. The financial institution has determined to take possession of the asset in lieu of 700 crore owed by the corporate, stated one of many individuals cited above.

A second individual confirmed that the choice to switch the possession of the constructing was taken as a strategy to scale back debt on the corporate’s steadiness sheet.

After the switch of possession, a financial institution can monetize the asset to cut back debt even earlier than the agency defaults.

The Jaypee Group’s headquarters are primarily based out of Nirman Sadan on Noida-Better Noida Expressway.

Requested for a remark, a Jaypee Group spokesperson stated: “No such data.”

This isn’t the primary occasion the place banks are taking up belongings of Jaypee Infratech in opposition to pending loans.

Final week, Mint reported that lenders to Jaypee Infratech had taken management of extra parcels of land alongside the Yamuna Expressway. In January, Jaypee Infratech had transferred possession of 250 acres to lenders.

Jaypee Infratech’s stand-alone debt related to the Yamuna Expressway stood at 8,768.54 crore as on 30 September.

The built-in Yamuna Expressway venture contains the development, operation and upkeep of the expressway and the rights to develop greater than 6,175 acres of land alongside it.

Jaypee Infratech is creating 5 townships on this land.

In November, Mint reported that the Jaypee Group is in talks to promote its total holding within the expressway venture, after a year-long effort to promote a partial stake within the asset didn’t materialize. The debt-laden group was in talks with infrastructure-focused funds—IDFC Options and I Squared Capital—for the sale.

At a consolidated stage, the Jaypee Group had an estimated debt of 75,000 crore on the finish of 31 March 2015, in response to the 21 October version of Credit score Suisse AG’s Home of Debt report. Bankers have been pushing it to promote belongings to cut back debt.

On 30 March, UltraTech Cement Ltd closed a deal to purchase the cement division of group agency Jaiprakash Associates Ltd for 15,900 crore. Up to now two years, Jaypee Group has already bought two hydropower initiatives in Himachal Pradesh; cement belongings in Gujarat, Jharkhand and Haryana; and wind energy belongings in Gujarat and Maharashtra.

vishwanath.n@livemint.com

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