Jaiprakash skips March interest due on 5.75% five-year convertibles

By Susanna Moon

Chicago, March 9 – Jaiprakash Associates Ltd. said it missed the interest payment due March 7 on its $150 million of 5.75% convertible bonds due 2017.

The company is in talks with bondholders “to arrive at a solution,” according to a company notice.

Jaiprakash said its operations have been hurt by the sluggish Indian economy and, in particular, by the power sector, which has been hit by unprecedented challenges including “lower capacity utilization and lower power tariffs.”

What’s more, “a number of real estate projects and infrastructure projects have experienced delays and reduced growth,” the company noted.

The company said it plans to reduce its debt through the sale of assets and businesses.

India-based Jaiprakash is an industrial conglomerate focused on engineering and infrastructure.

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