Jaypee bogged down by debt

Jaiprakash Associates or Jaypee as it is referred to is in the red today, currently down over 2.3% at Rs.67, with an intra day low at Rs.65.70.

The stock is in the red after news report coming in that the company has warned investors that it has not been able to meet many a loan obligations and it will now have to sell more assets to meet its debt agreements. This means sale of assets will not go to the company but will have to be sold quickly to settle debt.

In the Press Release issued by the company, it has stated that the principal amount due under which the company is not in compliance with all covenants and ratios is Rs 10,079 crore. This is 35.77% of its total principal amount of stand-alone debt of Rs 28,164 crore as of March 31.

On the block, to cut its  debt are its cement units in Solan in HP and Rewa in MP.