Jaypee Infratech Stake In Unit Falls To 36.4% After JC Flowers Invokes Pledged Shares

Jaypee Infratech Ltd. said its stake in wholly owned subsidiary Jaypee Healthcare Ltd. reduced to 36.35% after J.C. Flowers Asset Reconstruction Private Ltd. invoked the pledged shares.

J.C. Flowers invoked the pledge on nearly 272.11 million equity shares (63.65% stake) of Jaypee Healthcare on 10 March after the National Company Law Tribunal (NCLT) last week approved the resolution plan for Jaypee Infratech, the bankrupt infrastructure developer said in a stock exchange announcement.

The development came pursuant to the share pledge agreement and the security trustee agreement on account of continuing default in meeting repayment obligations by Jaypee Healthcare, it added.

The company said Jaypee Healthcare had taken financial facilities from Yes Bank Ltd. and consortium of lenders, and Jaypee Infratech pledged 63.65% stake in the subsidiary as security to the lenders. It added the lenders later assigned these debts to J.C. Flowers.

Jaypee Infratech said Jaypee Healthcare has now become its associate company.

Separately, the company said its five-member committee to monitor the implementation of its approved resolution plan held meetings on 13 and 15 March, and the next meeting is scheduled for 20 March.

The NCLT last week issued the much-awaited verdict in Jaypee Infratech’s insolvency resolution, and approved the bid of Suraksha Reality and Lakshdeep Investments & Finance Private Ltd.

Suraksha Reality-Lakshdeep Investments consortium’s offered a total of 20,363.36 crore rupees ($2.47 billion) under the resolution plan of the company, which was undergoing a corporate insolvency resolution process since 9 August 2017.

(Note: $1 = 82.3649 Indian rupees)

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