Jaiprakash Associates Ltd (JAL), a company facing significant debt issues, has proposed a revised settlement plan to its lenders during insolvency proceedings. The plan includes selling its assets to Dalmia Cement and making a substantial upfront payment.

JAL, which recently entered insolvency resolution proceedings, presented its updated offer to the National Company Law Appellate Tribunal (NCLAT). The tribunal had earlier advised JAL to increase its initial deposit amount. As a result, JAL now proposes a total upfront deposit of Rs 500 crore, comprising Rs 200 crore already paid and an additional Rs 300 crore. Additionally, it plans to arrange another Rs 150 crore internally within 12 weeks of the settlement's approval.

One of the major components of JAL's settlement strategy is the sale of its cement business to Dalmia Cement for Rs 2,150 crore. This transaction is crucial as the entire proceeds from this sale will be directed towards repaying the company's lenders. However, the completion of this asset sale is currently delayed, pending the issuance of a release document by the lenders.

In parallel, JAL is also expediting the redemption schedule of its optionally convertible debentures, which amount to Rs 6,000 crore. This move is aimed at further easing its financial obligations.

The revised settlement offer and asset sale to Dalmia Cement are part of JAL's efforts to navigate its financial distress and settle its debts in a structured manner. By proposing a higher upfront deposit and accelerating debt repayment plans, JAL aims to secure the approval of its lenders and the NCLAT.

The outcome of these efforts will not only determine JAL's future but also impact the broader landscape of insolvency and debt resolution in India's corporate sector. The company's ability to successfully execute these plans hinges on obtaining necessary approvals and cooperation from its creditors in the coming weeks.