Debt saddled Jaiprakash associates, The flagship company of JP Group, Tanked in trade today after Care Ratings decreased its debt rating to a default category.
Care score cut JP Associates’ debt rating to “d” outside of “BB” in the past, Citing a delay in debt servicing due to weak liquidity.
Care Ratings in its report said deterioration of you’re able to send financial performance and delay in receipt of funds through monetization of assets have affected the liquidity position of soccer jerseys cheap the company and led to delays in debt servicing.
JP Associates business financing loans worth Rs 25,280 crore and better NCDs worth Rs 29,303 crore were allocated a default rating. Some of the most significant names in jerseys from China free shipping the banking industry have significant exposures to the group.
to be able to a report by Morgan Stanley, CARE cutting the business’s rating to D from BB is a big negative cheap jerseys for banks. Morgan Stanley has in fact pegged total debt for JP affiliates at around 0.4 for every cent of the banking system in India, And at 1 per for the JP Group.
The report says ICICI Bank ‘s contact with JP Associates stands at around Rs 5,780 crore, followed by State Bank of India (SBI) At urs 2,812 crore. IDBI ‘s introduction is pegged at around Rs 2,270 crore and as well as IFCI at Rs 629 crore. The report highlights that it is unlikely that banks will push the company towards restructuring soon.
Sources in the banking industry shown the news to CNBC TV18, Saying that you can find delays in re payment on debt for JPA, But the account remains standard and has not fallen into the NPA or non running asset category yet.
Sources CNBC TV18 spoke to also added that there is no proposal for much more lending to JP Associates on the table as of now, And a corrective action plan to bring the company back on track calls for more sales of both core and non core assets of the company.
not forget, Jaypee Group’s Manoj Gaur has sold almost a fifth of his group’s assets as a way to pare down the massive debt, But the consolidated debt at the group level still stands at over Rs 61,285 crore.
for that fiscal FY15, JP employees reported a net loss of Rs 1,110 crore on a total employed income of Rs 10,854 crore on a standalone basis as in contrast to profit after tax (jim) Of Rs 414 crore on a total employed income of Rs 13,328 crore over FY14.
On a combined basis, private information reported a net loss of Rs 1,543 crore on an working with income of Rs 19,650 crore in FY15 compared to net loss of Rs 703 crore on a total operating income of Rs 20,007 crore on the inside FY14.