JSW Energy Inks Pact with Jaiprakash Power Ventures to Streamline Debt

Under key terms of the agreement, an amount of Rs 351.77 crore will be transformed into equity shares of JPVL at a par value of Rs 10 each, according to an official statement

January 03, 2020. By News Bureau

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JSW Energy has announced that it has entered into an agreement with Jaiprakash Power Ventures Ltd (JPVL) to reshuffle the principal outstanding amount of Rs 751.77 crore payable by JPVL.

Under key terms of the agreement, an amount of Rs 351.77 crore will be transformed into equity shares of JPVL at a par value of Rs 10 each, according to an official statement.

Of the balance outstanding principal amount of Rs 400 crore, Rs 280 crore will be written off and Rs 120 crore will endure as debt to be paid by JPVL to JSW Energy.

This will be paid quarterly on priority basis out of the available cash flows after JPVL has paid 10 per cent of the restructured sustainable debt to its secured lenders.

The company had by now made a provision for Rs 574.19 crore in the quarter ended March 31, 2018, for this.

Also, JPVL and JSW Energy have agreed to relinquish their respective rights to obtain any payments from each other and unconditionally release each other from all liabilities in relation to the securities purchase agreement signed on November 16, 2014, for transfer of Karcham and Baspa hydro assets from JPVL to the company.

This will result in the reversal of an amount of Rs 177.48 crore of liabilities outstanding to JPVL in the company's books.

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