JSW Energy to pick up stake in Jaiprakash Power Ventures in debt recast deal

JSW Energy Limited has entered into an agreement with Jaiprakash Power Ventures Limited (JPVL) to restructure the principal outstanding amount of Rs 7.52 billion owed by the latter. Under key terms of the agreement, an amount of Rs 3.52 billion will be converted into equity shares of JPVL at a par value of Rs 10 each. Of the balance outstanding principal amount of Rs 4 billion, Rs 2.8 billion will be written off and Rs 1.2 billion will continue as debt to be paid by JPVL to JSW Energy. This will be paid quarterly on a priority basis out of the available cash flows after JPVL has paid 10 per cent of the restructured sustainable debt to its secured lenders.

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