News Digest

21 December 2017
Lenders put Jaypee Group firm PPGCL up for sale

Lenders have put up for sale Prayagraj Power Generation Co. Ltd (PPGCL), a subsidiary of Jaiprakash Power Ventures Ltd, adding yet another entity from the Jaypee Group to the list of companies in various stages of debt resolution. Lenders led by State Bank of India on Wednesday invited expressions of interest for a majority stake in the 1,980 megawatt (MW) thermal power plant, said a newspaper advertisement. The lenders now together hold 89.47% stake in Prayagraj, which had liabilities of Rs13,644.11 crore, according to Jaiprakash Power Ventures' annual report for fiscal year 2016-17. Lenders have hired SBI Capital Markets as the transaction adviser. The company has been undergoing restructuring under the Reserve Bank of India's scheme for sustainable structuring of stressed assets (S4A) since June 2016. The plant, which Jaiprakash Power Ventures bought from Uttar Pradesh Power Corp. Ltd, ran into trouble due to a lack of coal and paucity of working capital funds. The plan's project cost was also revised upwards to Rs15,537 crore which was met through Rs4,543.50 crore equity and Rs10,993.50 crore debt, according to the annual report.

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