Jaiprakash Associates had slipped 5% to an intra day low at Rs.8.43 and continues to remain down in the red.

The stock has slipped on news reports that ICICI Bank, which is the lead banker for the company has invoked the strategic debt restructuring (SDR) provision. When SDR is invoked, it could mean that the company could be taken over by all the lenders and this in turn puts in jeopardy, the company’s cement unit sale to Kumaramangalam Birla’s UltraTech.

The news, unconfirmed reports show that JP Associates and its lenders have started looking out for other buyers like JSW Group and some PE firms. It is this uncertainty over the transaction that ICICI Bank decided to invoke the SDR.

Currently, the company owes over Rs.30,000 crore to its lenders and this cement sale unit was critical.

The stock exchanges have sought a clarification from the company and the response from the company is awaited.