JSW Energy Signs Pact With Jaiprakash Power Ventures To Restructure Debt
An amount of Rs 351.77 crore will be converted into equity shares of JPVL at a par value of Rs 10 each
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JSW Energy on Thursday entered into an agreement with Jaiprakash Power Ventures Ltd (JPVL) to restructure the principal outstanding amount of Rs 751.77 crore owed by JPVL.
Under key terms of the agreement, an amount of Rs 351.77 crore will be converted 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 continue 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 already made a provision for Rs 574.19 crore in the quarter ended March 31, 2018, for this.
Besides, JPVL and JSW Energy have agreed to waive their respective rights to receive 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 payable to JPVL in the company's books.
JSW Energy generates 4,541 MW of power per year of which 3,140 MW is thermal, 1,391 MW is hydropower and 10 MW is solar.