More than three years after JSW Energy extended loans to debt-laden Jaiprakash Power Ventures (JP Power), the company has decided to convert part of the outstanding debt exposure into equity and write off the remainder.
JP Power availed of the loan as advance payment for the proposed sale of its power unit to JSW Energy in 2016. The deal, however, was later called off. On Thursday, JSW Energy informed the exchanges it had entered into an agreement to restructure the outstanding principal amount that JP Power owes.
JSW Energy had in 2016 signed a deal with JP Power to buy the Bina plant in Madhya Pradesh. It also agreed to extend a loan of about Rs 1,000 crore to the firm as part of the deal.
