A consortium of banks led by private sector lender ICICI has concluded the largest asset resolution in the country with the sale of the cement business of Jaiprakash Associates Ltd (JAL) and Jaypee Cement Corporation Ltd (JCCL) to UltraTech Cement Ltd. According to a report quoting ICICI Bank sources, the transaction has been valued at Rs 16,189 crore.

The new development has helped in transferring a part of the debt of Jaiprakash Associates and Jaypee Cement Corp from a stressed account to a AAA-rated company, the report added.

The report quoting ICICI Bank MD and CEO Chanda Kochhar said that the new development comes across as the largest asset resolution in the country so far. She hoped that the transaction will pave the way for more such resolutions.

The directors of Jaiprakash Associates also approved the closing of the transaction as per the definitive agreement dated March 31, 2016 with Ultratech Cement for sale of part of its cement business. The part of cement unit has been sold at an enterprise value of Rs 16,189 crore. The company will also get additional amount of Rs 470 crore by way of this transaction.

Related reports added that the proceeds from this deal would help Jaiprakash Associates in cutting debt by around Rs 14,000 crore, and that would include repayment of its loan to its bankers and also part payment to the holders of Foreign Currency Convertible Bonds (FCCBs), they added.

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