JP Associates is the top loser

JP Associates is the top loser on the BSE. The stock was down 5% intra day at Rs.12.65 and it remains deep in the red, down 4%.

For the second time in five months, the company said that it has once again failed to Rs.36.25 crore as principal installment and interest on NCDs, which was due on 25th April.

Prior to this, it was in March that the company had been unable to pay the bi-annual interest payment.

Interestingly, in March, the reason it had given was  that it was in the process of reducing debt and then, it was through an MoU with UltraTech Cement, through divestment of part of its cement business.

And this time too, the reason it has cited is, “This may be read in consonance with disclosures / press releases dated February 28, 2016, February 29, 2016 and July 04, 2016 wherein the Company has informed about the disinvestment initiatives being undertaken / pursued to deleverage its balance sheet and improve its cash flows for timely servicing of its debt obligation.”