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JSW Energy has entered into an agreement with Jaiprakash Power Ventures Limited (JPVL) to restructure debt of ₹752 crore.
As part of this agreement, ₹351.77 crore will be converted into equity shares of the financially-troubled JPVL at par value of ₹10 each, the Sajjan Jindal-led company said in a filing to the exchanges. Of the balance outstanding of ₹400 crore, ₹280 crore will be written off, and ₹120 crore will be the debt that JPVL will have pay to JSW Energy. This will be done on quarterly and priority basis, out of the available cash flows after JPVL has paid 10 per cent of the restructured debt to its secured lenders, the filing added.
In July 2016, JSW Energy had agreed to acquire 2x250 MW thermal power plant of JPVL in Madhya Pradesh for an enterprise value of ₹2,700 crore. However, in January 2018, JSW Energy backed out of the deal.
JSW Energy had already made a provision of ₹574.19 crore in the March 2018 quarter for restructuring the debt. “Further, 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 dated November 16, 2014 for transfer of Karcham and Baspa hydro assets from JPVL to the company,” the filing said.
This will result in the reversal of liabilities of ₹177.48 crore payable to JPVL in the books of JSW Energy. In December, JPVL had called a meeting of bondholders to decide on the conversion of foreign currency convertible bonds (FCCBs) worth $200 million into equity shares of ₹12 each.
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