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Time of India
12 hours ago
- Business
- Time of India
NCLAT Upholds Insolvency: NCLAT Affirms Insolvency Proceedings Against Jaypee Cement Corp Amid Debt Crisis, ET LegalWorld
The insolvency appellate tribunal has approved the insolvency proceedings against the debt-ridden Jaypee Cement, upholding an earlier order passed by the National Company Law Tribunal (NCLT). A two-member bench of the NCLAT rejected the appeal filed by Alok Gaur against the NCLT order, saying the debt and default matter is proved, and it did not find any error in the order directing the initiation of insolvency proceedings. The National Company Law Appellate Tribunal (NCLAT) rejected Gaur's submission that its parent firm Jaiprakash Associates Ltd (JAL) has signed an MRA (Master Restructuring Agreement) with lenders, undertaken to discharge its liabilities. Advt Advt As all debt stood transferred to JAL, now facing CIRP ( Corporate Insolvency Resolution Process ) for failure to implement MRA, and the debt of both JAL and JCCL can be considered, an appropriate resolution can be rejecting it, the NCLAT said the debt, which was owned by JCCL, to the lenders "shall not be evaporated" merely by the fact that JAL has taken the liability to discharge its debts of JCCL and it does not prohibit the lenders to file insolvency proceedings against it under Section 7 of the IBC, due to the failure of the restructuring proposal."The submission of the appellant that JAL having undertaken the liability to clear the debts and defaults of JCCL, hence, JCCL has no liability and no application was maintainable against JCCL, also does not commend us," said the NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun appellate tribunal further said initiation of CIRP proceedings against JAL cannot be a ground to contend that no proceedings can be initiated against JCCL."JCCL has also given its securities for obtaining the various facilities from the SBI between 2012 and 2015. The Financial Creditor can always invoke the securities given by JCCL to realise the debt," it Financial Creditor has never shown the debt of JCCL to be transferred to the JAL in its Financial Statements, and the fact that JAL and JCCL in their financial statements have treated the debt to be discharged is not binding on the Financial the NCLAT in its 26-page-long order pointed out that JCCL was not even the party of MRA, which was not even fulfilled."The Adjudicating Authority (NCLT), after considering all the relevant facts and circumstances, has come to the conclusion that debt and default on the part of the CD - JCCL is proved. When the debt and default are proved, the admission of the Section 7 Application against JCCL cannot be faulted."We, thus, do not find any error in the order of the Adjudicating Authority admitting Section 7 Application," the NCLAT said, dismissing Gaur's July 22, the Allahabad bench of NCLT admitted a petition filed by India's leading public sector lender State Bank of India (SBI), which had provided credit facilities to Jaypee Cement Corporation Ltd (JCCL) between JAL and JCCL had defaulted in payment of loans and lenders, including SBI. Later, a composite Scheme of Debt Realignment Plan for the debt of JAL and JCCL was per the MRA executed on October 31, 2017, it was divided into three different Bucket 1, the divestment of a substantial part of its cement business along with debt of Rs 11,689 crore to UltraTech Cements was approved. The residual debt of JAL and JCCL was bifurcated into two different 2A has a sustainable debt of Rs 5,072 crore, which was to be retained under the residual business of JAL to be serviced from the cash flow from the operations of the residual business of JAL. It also envisaged the shifting of JCCL's Shahabad Cement Plant exposure of Rs 778.10 crore to Bucket 2B has an unsustainable debt of Rs 13,590 crore, and it was proposed to be transferred to a separate Real Estate SPV for 20 years, backed by land of 1039 acres (already mortgaged to lenders) of the company, having the value of Rs 14,156 debt of Bucket 2B has not been resolved and remains outstanding. Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles Scan to download App
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Business Standard
16 hours ago
- Business
- Business Standard
NCLAT upholds insolvency order against Jaypee Cement, dismisses appeal
The insolvency appellate tribunal has affirmed the insolvency process against Jaypee Cement Corporation Limited (JCCL), upholding an earlier ruling by the National Company Law Tribunal (NCLT). A two-member panel of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Alok Gaur, stating that the debt and default issues had been established and that it found no fault in the NCLT's order to initiate insolvency proceedings. Gaur argued that Jaiprakash Associates Limited (JAL), the parent company of Jaypee Cement, had entered into a Master Restructuring Agreement (MRA) with lenders and had committed to settling its debts. However, the NCLAT noted that since all debt obligations had been transferred to JAL, which is now undergoing the Corporate Insolvency Resolution Process (CIRP) due to its failure to honour the MRA, the liabilities of both JAL and JCCL could be considered for resolution. The NCLAT dismissed this argument, asserting that the debt originally owed by JCCL to its lenders remains valid. It added that the mere fact that JAL had assumed responsibility for JCCL's liabilities did not prevent lenders from initiating insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC) after the failure of the restructuring plan. The appellate body clarified that the commencement of CIRP proceedings against JAL does not preclude initiating similar proceedings against JCCL. 'The submission of the appellant that JAL having undertaken the liability to clear the debts and defaults of JCCL, hence, JCCL has no liability and no application was maintainable against JCCL, also does not commend us,' remarked the NCLAT bench, led by Chairperson Justice Ashok Bhushan and Member Barun Mitra. 'JCCL has also given its securities for obtaining the various facilities from the State Bank of India between 2012 and 2015. The financial creditor can always invoke the securities given by JCCL to realise the debt,' it stated. It was also emphasised that the financial creditor has never reflected the transfer of JCCL's debt to JAL in its financial records, and even if JAL and JCCL have, in their statements, recorded the debt as settled, such treatment does not bind the financial creditors. Additionally, the NCLAT pointed out that JCCL was not a party to the MRA, which in any case was not implemented. 'We, thus, do not find any error in the order of the adjudicating authority admitting Section 7 application,' the appellate tribunal concluded, thereby rejecting Gaur's appeal. Previously, on July 22, the Allahabad bench of the NCLT admitted a plea by State Bank of India (SBI), India's top public sector lender, which had provided credit facilities to Jaypee Cement Corporation Limited (JCCL) during 2012–2015. Both JAL and JCCL defaulted on their loan repayments, prompting lenders, including SBI, to consider a comprehensive Debt Realignment Plan for the combined debts of both companies. The MRA executed on October 31, 2017, divided the debt into three categories. In Bucket 1, the transfer of a major portion of JAL's cement business along with a debt of Rs 11,689 crore to UltraTech Cement was sanctioned. The remaining debts of JAL and JCCL were categorised into two further segments. Bucket 2A involved a sustainable debt of Rs 5,072 crore, intended to be retained within JAL's residual business and serviced through its operational cash flows. This category also included the shifting of JCCL's Shahabad Cement Plant exposure of Rs 778.10 crore to JAL. Bucket 2B comprised an unsustainable debt of Rs 13,590 crore, which was proposed to be transferred to a separate real estate special purpose vehicle for a period of 20 years, backed by land assets totalling 1,039 acres (already mortgaged to lenders) with an estimated value of Rs 14,156 crore. Jaiprakash Associates' CoC clears cash outflow for June quarter In May, the lenders of JAL gave the green light to a cash outflow plan of Rs 936.27 crore for the June quarter to ensure the company's operations remain stable. In a regulatory filing, JAL mentioned that its Committee of Creditors (CoC) had sanctioned 'the budgeted cash outflows of the corporate debtor for the period from 1 April 2025 to 30 June 2025, of up to Rs 936.27 crore.' This sanctioned amount comprised Rs 856.73 crore designated for regular operational costs and Rs 79.54 crore allocated for one-time expenses.
Time of India
17 hours ago
- Business
- Time of India
NCLAT upholds insolvency proceedings against Jaypee Cement Corp
The insolvency appellate tribunal has approved the insolvency proceedings against the debt-ridden Jaypee Cement, upholding an earlier order passed by the National Company Law Tribunal (NCLT). A two-member bench of the NCLAT rejected the appeal filed by Alok Gaur against the NCLT order, saying the debt and default matter is proved, and it did not find any error in the order directing the initiation of insolvency proceedings. The National Company Law Appellate Tribunal (NCLAT) rejected Gaur's submission that its parent firm Jaiprakash Associates Ltd (JAL) has signed an MRA (Master Restructuring Agreement) with lenders, undertaken to discharge its liabilities. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Les banques sont jalouses du livret or à 8,63% Top Finance Lire la suite Undo As all debt stood transferred to JAL, now facing CIRP ( Corporate Insolvency Resolution Process ) for failure to implement MRA, and the debt of both JAL and JCCL can be considered, an appropriate resolution can be done. However, rejecting it, the NCLAT said the debt, which was owned by JCCL, to the lenders "shall not be evaporated" merely by the fact that JAL has taken the liability to discharge its debts of JCCL and it does not prohibit the lenders to file insolvency proceedings against it under Section 7 of the IBC, due to the failure of the restructuring proposal. Live Events "The submission of the appellant that JAL having undertaken the liability to clear the debts and defaults of JCCL, hence, JCCL has no liability and no application was maintainable against JCCL, also does not commend us," said the NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra. The appellate tribunal further said initiation of CIRP proceedings against JAL cannot be a ground to contend that no proceedings can be initiated against JCCL. "JCCL has also given its securities for obtaining the various facilities from the SBI between 2012 and 2015. The Financial Creditor can always invoke the securities given by JCCL to realise the debt," it said. The Financial Creditor has never shown the debt of JCCL to be transferred to the JAL in its Financial Statements, and the fact that JAL and JCCL in their financial statements have treated the debt to be discharged is not binding on the Financial Creditors. Moreover, the NCLAT in its 26-page-long order pointed out that JCCL was not even the party of MRA, which was not even fulfilled. "The Adjudicating Authority (NCLT), after considering all the relevant facts and circumstances, has come to the conclusion that debt and default on the part of the CD - JCCL is proved. When the debt and default are proved, the admission of the Section 7 Application against JCCL cannot be faulted. "We, thus, do not find any error in the order of the Adjudicating Authority admitting Section 7 Application," the NCLAT said, dismissing Gaur's petition. On July 22, the Allahabad bench of NCLT admitted a petition filed by India's leading public sector lender State Bank of India (SBI), which had provided credit facilities to Jaypee Cement Corporation Ltd (JCCL) between 2012-15. Both JAL and JCCL had defaulted in payment of loans and lenders, including SBI. Later, a composite Scheme of Debt Realignment Plan for the debt of JAL and JCCL was proposed. As per the MRA executed on October 31, 2017, it was divided into three different buckets. Under Bucket 1, the divestment of a substantial part of its cement business along with debt of Rs 11,689 crore to UltraTech Cements was approved. The residual debt of JAL and JCCL was bifurcated into two different buckets. Bucket 2A has a sustainable debt of Rs 5,072 crore, which was to be retained under the residual business of JAL to be serviced from the cash flow from the operations of the residual business of JAL. It also envisaged the shifting of JCCL's Shahabad Cement Plant exposure of Rs 778.10 crore to JAL. While Bucket 2B has an unsustainable debt of Rs 13,590 crore, and it was proposed to be transferred to a separate Real Estate SPV for 20 years, backed by land of 1039 acres (already mortgaged to lenders) of the company, having the value of Rs 14,156 crore. The debt of Bucket 2B has not been resolved and remains outstanding.
Yahoo
22-05-2025
- Business
- Yahoo
The NHP Foundation and Henson Development Company Open the Doors to Park Heights Senior Apartments
Development is first phase of $400M Neighborhood Revitalization Plan BALTIMORE, May 22, 2025 /PRNewswire/ -- The NHP Foundation (NHPF), a national not-for-profit provider of affordable housing, partnered with The Henson Development Company (Henson), the City of Baltimore, the Maryland Department of Housing and Community Development (DHCD), and Park Heights Renaissance Community Development Corporation (CDC) to celebrate the ribbon-cutting of The Terraces at Park Heights—a $52 million development delivering 100 affordable one- and two-bedroom homes for seniors in Northwest Baltimore. This milestone marks the first phase of a sweeping transformation of the 17.3-acre Park Heights Master Redevelopment Area (MRA), designed to revitalize a historically under-invested community into a vibrant, mixed-income, multi-generational neighborhood. The master redevelopment plan includes NHPF and Henson's 90-unit single-family home community, affordable multifamily building and new green spaces. This is expected to further support the neighborhood revitalization efforts which include the new Enoch Pratt Free Library as well as an overhaul of Pimlico Racecourse. Distinguished guests at the ceremony included Maryland Governor Wes Moore and First Lady of Maryland Dawn Moore, Baltimore Mayor Brandon M. Scott, and First Lady of Baltimore City Hana Scott, Councilwoman Sharon Green Middleton, Housing Commissioner Alice Kennedy, Delegate Sandy Rosenberg, Senator Antonio Hayes, Park Heights Renaissance CEO Yolanda Jiggetts, and Elizabeth Tatum, Acting Director, Mayor's Office of Recovery Programs, and Delegates Malcolm Ruff and Sean Stinnett. "Since taking office, we've invested more than $75 million into Park Heights to create jobs, grow the economy, and open pathways to work, wages, and wealth for Baltimoreans," said Gov. Wes Moore. "This project marks the next chapter in our work, and it will transform the city by ensuring seniors have access to affordable housing and a safe, vibrant community. When we say this is Maryland's decade and Baltimore's time, it's partnerships like this one that show us what that looks like." Major Announcements Unveiled at the Event: The overall master-planned community will be called Cloverbrook Green. Cloverbrook was the first horse to win the Preakness Stakes that had been bred and trained in Maryland. The community will offer an array of "green" features including solar-powered common areas and energy-efficient appliances. 90+ single-family homes with a targeted construction start of 2026. A 59-unit affordable multifamily rental building will be named The Anderson, commemorating George "Spider" Anderson's legacy. A new sculpture of Anderson—one of only two African American jockeys to win the Preakness in its 150-year history—was unveiled along with other outdoor artwork created by Art with a Heart, a local organization dedicated to using art to enrich lives, bridge divides, and forge the leaders of tomorrow. George "Spider" Anderson was the first African American to win the Preakness Stakes on May 10, 1889 and May 10th, 2025, the date of the Ribbon cutting was the 136th anniversary of his win. A mural by Baltimore based multi-hyphenate artist LaToya Peoples that honors the history of people of color in the racing industry and celebrates Baltimore's heritage. "We see this as a unique opportunity to merge Baltimore's rich history with innovative, forward-thinking development that will reestablish this area as a cornerstone of economic and social activity," said Dana Henson, Vice President, Principal, The Henson Development Company, Inc. "There's a story here waiting to be retold, and we're excited to craft a narrative that blends the area's historic vibrancy with new opportunities for growth, connection, and celebration." The event featured citations from both the Mayor's office and Senator Chris Van Hollen and representatives from the many vendors responsible for the project's completion: Southway Builders, Torti Gallas & Partners, STV Inc., D.W. Kozera, and Environmental Health Consultants. The celebration aligned with the 150th running of the Preakness Stakes and the 4th Annual George "Spider" Anderson Music & Arts Festival, reinforcing the neighborhood's cultural ties to Baltimore's racing history. "You can see my family's home from the Terraces, so this groundbreaking is especially meaningful to me," said Baltimore Mayor Brandon M. Scott. "For many years, folks thought a project like this one, in Park Heights, was impossible. But here we are. This is the story of a neighborhood that never gave up, that stayed committed, and that came together to do the impossible. I couldn't be prouder to be a son of Park Heights—especially today—and I'm grateful to each and every member of the community who helped make this a reality." Funding partners for the development include: $8.7M – U.S. Department of Housing and Urban Development (HUD) $22.5M – Tax credit equity from R4 Capital and Aetna, a CVS Health Company $13.3M – City of Baltimore $5.4M – Maryland CDA $2.1M – Deferred developer fees Additionally, through community quarterback Park Heights Renaissance, Governor Moore's Office of Children funded the ENOUGH Grant Program which contributed $300,000 toward a new onsite maker space, providing hands-on creative programming for residents and the surrounding community. "In partnership with our state, city and local partners, we are helping to restore Park Heights' position as one of the most prominent and sought after neighborhoods in the City," said Mansur Abdul-Malik, Senior Vice President, NHPF. "The new maker space reflects our commitment to investing in people and places which we feel are the two most important ingredients for any neighborhood revitalization effort." Community-Driven, Sustainable Design The Terraces at Park Heights incorporates rooftop, carport, and gazebo-mounted solar panels, battery backup power, and meet the National Green Building Standards. Amenities include a fitness center, library, computer lab, coffee bar, and lounge areas, along with original artwork and photography celebrating the neighborhood's horseracing legacy. Resident services will be provided onsite by Operation Pathways, NHPF's dedicated resident services subsidiary. "Housing is the foundation of strong communities. We are committed to building public-private partnerships that drive long-term change," said Eric Price, President and CEO of NHPF, "Though the road hasn't always been easy, we have remained true to our commitment—to the City and to the residents of Park Heights—to help make this a place where people want to live, grow, and thrive." About The NHP Foundation (NHPF)The NHP Foundation (NHPF) is a 501(c)(3) not-for-profit real estate corporation founded in 1989. With over three decades of experience in affordable housing acquisition, investment, development and construction, NHPF's team brings together deep knowledge of real estate fundamentals, attention to changing resident and community needs, and the expertise required to make sound investment decisions. We are also committed to providing equitable, tailored resident services programs, powered by our subsidiary, Operation Pathways, which offers Family-Centered Coaching to families facing poverty and hardship. Through strategic partnerships with financial institutions, the public sector, faith-based organizations, and other nonprofits, NHPF currently owns and operates 63 properties across 16 states and the District of Columbia serving over 25,000 residents. For more information, please visit About The Henson Development CompanyTHE HENSON DEVELOPMENT COMPANY, INC. (THC), a 100% family owned and operated minority-owned business enterprise, is a fully integrated real estate developer, consultant and program manager based in Baltimore, Maryland. The president and founder of THC is Dan Henson, a successful developer who has a distinguished private and public sector career in housing. Founded in 2000, the company is committed to providing full service real estate development services in urban and progressive communities. THC has had particularly detailed experience with re-energizing former public housing developments into mixed-income, mixed-use communities for more sustainable and stable communities, offering a comprehensive vehicle to revitalize neighborhoods that nurture and support an improved quality of life for the families who reside there. THC has worked on or is currently working on real estate development projects totaling over $600 Million – 3,000 units in Baltimore, Maryland, Washington, D.C. and Florida. Additionally, THC serves as a consultant on numerous assignments across the country. View original content to download multimedia: SOURCE NHP Foundation
Hans India
14-05-2025
- Business
- Hans India
MRAs with 10 more nations soon: DIC
New Delhi: India has signed mutual recognition agreements (MRAs) with customs authorities of nine countries and is looking at inking such pacts with 10 more nations by December this year, a government official said on Tuesday. Under this agreement, trade facilitation is extended reciprocally. Akhil Kumar Khatri, Principal Commissioner, Directorate of International Customs (DIC), said these MRAs help promote two-way trade. 'We have signed these agreements with nine countries and by December this year, we are looking at signing with 10 more nations,' Khatri told PTI on the sidelines of an event on 'Unlocking Global Trade Synergies: First India-Russia AEO Seminar in association with the Central Board of Indirect Taxes and Customs (CBIC)'. It was organised by the Federation of Indian Export Organisations (FIEO) here. Last year, the CBIC and the Russia's Federal Customs Service signed the Authorized Economic Operator (AEO) MRA to provide reciprocal benefits to accredited and trusted exporters of both countries in the clearance of goods by the customs authorities of the importing country. India has already signed such pacts with with the customs administrations of South Korea, Hong Kong, Taiwan, the US, the UAE, Australia, and Russia.
