Jaiprakash Associates and UltraTech on Monday approved an amendment to the draft sale agreement that was signed in March this year to sell JP Associates cement business to the latter. UltraTech will buy JP’s cement five operating units, amounting to a capacity of 17.2 million tonnes per annum for Rs 16,189 crore and pay an additional Rs 470 crore for a grinding unit. JP Associates current debt stand's at Rs 28,000 crore alongwith Rs 2,000 crore in a subsidiary. Of this, Rs 12,000 crore will be transferred to UltraTech, says Rahul Kumar, Director & CFO of JP Associates. The company will have close to Rs 15,000-16,000 crore debt left post the deal. Post yesterday’s amendment, Kumar does not expect the lenders to invoke structural debt restructuring (SDR) guidelines. He is expecting to close the deal by 2016-end. The company will continue to look at options to pare its remaining debt. It still has 10 million tonnes of cement assets alongwith assets in power.
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