With the lenders invoking the strategic debt restructuring (SDR) option against debt-laden Japyee Group, its flagship firm Jaiprakash Associates today said it has convened a meeting of board of directors on Monday to discuss progress of divestment plans and other issues.

The development comes against the backdrop of sale of the group’s cement business to Ultratech for Rs 15,900 crore coming under cloud after lenders invoked SDR earlier this week.

“A meeting of the Board of Directors of the company is scheduled at a short notice on July 4, 2016, inter alia, to review the progress of the divestment plans and other related matters,” Jaiprakash Associates said in a filing to the BSE today.

The company said the Joint Lenders Forum meeting held to review the progress made so far on the Corrective Action Plan, approved by the lenders in January, 2015 has agreed for invocation of SDR taking June 28, 2016 as reference date, subject to approval of lenders.

Jaiprakash Associates owes over Rs 30,000 crore to a consortium of lenders led by ICICI Bank and the sale of its 21.2-million tonne cement business is very crucial for the promoters (the Gaur family) to continue in business.

The company also said that the trading window of the company shall remain closed from 9 pm on July 1 to July 6 in pursuant to SEBI (Prohibition of Insider Trading), Regulations, 2015 and in accordance with the code of conduct to “regulated, monitor and report trading by insiders for trading in listed or proposed to be listed securities.”

During the closed trading window period, the employees, directors, key managerial personnel and designated persons and their immediate relatives shall not trade in company’s shares, it added.

The Jaypee Group had a consolidated debt of Rs 58,250 crore as of March 2016.

“The Jaypee Group is already an NPA non-performing asset) for SBI. The lenders have already invoked the SDR. The JLF (joint lenders forum) will shortly consider the cement sale. Our steering committee which will look into the Jaypee-UltraTech deal whether to accept it or not,” a senior SBI official had said yesterday.

The country’s largest lender has an exposure of Rs 7,000 crore to JP Associates, which for long has been struggling to service its debt after its infra, led by roads and power business, had cash flow issues.

The company sold most of its power plants over the past two years and the sale of the cement business got stuck due to restrictions on mine leasing.

But the recent modifications in the Mines and Minerals (Development and Regulations) Act have paved the way for the company to transfer its coals mines along with the cement plants, which led to the Birlas agreeing to snap up the cement business late March.

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