Jaiprakash Associates Limited (JAL), a leading infrastructure company in India, has made its latest disclosure regarding defaults on loan repayments and financial obligations for the month ended May 2025. This disclosure is in compliance with the Securities and Exchange Board of India (SEBI) circular issued in November 2019, aimed at enhancing transparency for investors and stakeholders.

As per the report dated 2nd June 2025, JAL has not reported any new defaults on the payment of interest or principal amounts during the specified month. This update comes at a crucial time as the company is currently under the corporate insolvency resolution process (CIRP) following an order issued by the National Company Law Tribunal (NCLT), Allahabad Bench on 3rd June 2024. The insolvency proceedings have been initiated under the Insolvency and Bankruptcy Code (IBC), 2016, reflecting the company’s efforts to resolve its financial distress through legal and structured means.

The total outstanding borrowings from banks and financial institutions amount to INR 55,407.72 crore on a provisional basis as of 24th April 2025. This figure represents the aggregate of all short-term and long-term debt facilities availed by the company. Multiple lenders including National Asset Reconstruction Company Limited (NARCL), Axis Bank, Canara Bank, ICICI Bank, State Bank of India, Yes Bank, and several asset reconstruction companies are involved in this extensive lending and claim verification process.

The report also highlights that the lenders are currently in the process of filing their claims which are under verification by the resolution professional appointed for the case. Mr. Bhuvan Madan was initially appointed as the interim resolution professional (IRP) and later confirmed as the resolution professional (RP) by the Committee of Creditors (CoC) in their meeting held on 30th July 2024. He holds 87.72 percent voting share approval, which empowers him to manage the insolvency resolution process on behalf of creditors and the company.

This disclosure, while showing no new defaults in the latest month, also brings attention to the large financial obligations that JAL is dealing with, which makes the resolution process complex and significant. The ongoing CIRP is expected to decide the future course for the company — whether it undergoes restructuring, repayment plans, or liquidation if a viable resolution cannot be reached.

For investors, creditors, and industry watchers, this disclosure acts as an important update on JAL’s financial health and ongoing legal proceedings. It provides some assurance that the company is currently maintaining payment discipline even while under insolvency protection but also reflects the critical scale of its outstanding debt and the importance of a successful resolution.

The infrastructure sector in India has been heavily impacted by financial stress and delayed projects in recent years, and Jaiprakash Associates remains one of the key companies navigating this challenging environment through legal insolvency frameworks. The resolution professional’s role is crucial in steering the company through negotiations, claim verification, and eventual recovery or restructuring.

In conclusion, the disclosure by Jaiprakash Associates for May 2025 indicates no new defaults while confirming significant outstanding debts under the insolvency process. This information is vital for all stakeholders to monitor progress in the resolution proceedings and evaluate the company’s prospects going forward

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