In its filings with the stock exchanges, JP Associates has said that it failed to repay Rs 2,905 crore in principal amount to banks and another Rs 1,558 crore in interest payments. The company reported a loss of Rs 3,240 crore on revenues of Rs 8,794 crore.
Post the cement unit sale deal, Jaypee will continue to have 10.6 mtpa of cement capacity in Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and Karnataka. The group fell into a debt trap after its foray into infrastructure and real estate, and when the construction of a Formula 1 racecourse failed to generate money. It had blamed the worsening performance of core sectors and a shaky economy for the fall in financial metrics. In the past two years, JP Associates was aggressive in selling assets to raise about Rs 22,000 crore, but debt levels are estimated to be still up 18 per cent over the past two years. The asset sales to UltraTech included another 8.4 mtpa of cement capacity in Gujarat for Rs 5,000 crore.