24 Mar 2019 | 11:08 AM


Jaypee Infratech lenders seek revised bids from NBCC Suraksha Group bankruptcy-bound realty firm
Published on 03-15-2019
Lenders of debt-ridden Jaypee Infratech met Thursday here to discuss bids of state-owned NBCC Ltd and Suraksha Group for the bankruptcy-bound realty firm and asked them to sweeten their offers sources said.

NBCC which has the backing of the government is unlikely to increase the offer of Rs 500 crore capital infusion but is ready to help lenders in monetisation of the Yamuna Expressway and the land offered by the PSU in its resolution plan they said.

A meeting of the committee of creditors (CoC) was held to discuss resolution plans submitted by NBCC and Suraksha Group. The CoC will soon formally write to both the bidders to submit revised bids based on the discussions held.

In the meeting NBCC suggested that the company would complete and deliver stalled projects to homebuyers in three years instead of the earlier promise of four-five years they said.

NBCC also said it was ready to work as project management consultant and charge fees for completing the stalled projects while lenders could keep control of Jaypee Infratech the sources said.

In its resolution plan submitted last month NBCC offered 1400 acre land worth Rs 6000 crore as well as Yamuna Expressway to lenders.

It proposed that banks should raise about Rs 2000 crore against the expressway and provide half of the amount (Rs 1000 crore) to the state-owned company which would utilise the fund as an upfront payment.

NBCC has offered to fund the gap of about Rs 1500 crore between estimated construction cost and receivables from customers.

In contrast Suraksha Group made an offer of about Rs 20 crore as an upfront payment and land worth Rs 5000 crore sources said. The Mumbai-based group promised to complete the pending projects in three years.

The National Company Law Tribunal (NCLT) in 2017 had admitted the application of a consortium led by IDBI Bank seeking resolution of Jaypee Infratech and appointed Anuj Jain as the insolvency resolution professional (IRP) to manage the company`s business and invite bids from investors.

In the first attempt under the insolvency process lenders had rejected the Rs 7350 crore bid of Lakshdeep part of Suraksha Group as they found it to be substantially lower than the company`s net worth and assets.

Therefore the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech on the NCLT`s direction.

Sources had earlier said the settlement proposal of promoter Jaypee group would not be taken up in the CoC meet but lenders could deliberate on it separately.

This is the second time in less than a year that Jaiprakash Associates Ltd (JAL) has sought to retain control of its cash-strapped subsidiary. The latest offer is almost similar to what JAL offered last year to the lenders and homebuyers.

In April last year JAL had made an unsolicited offer of about Rs 10000 crore to settle the dues of Jaypee Infratech. It had offered 2000 equity shares each to the buyers.

The realty firm has an outstanding debt of nearly Rs 9800 crore of which Rs 4334 crore pertains to IDBI Bank. Other lenders are IIFCL LIC SBI Corporation Bank Syndicate Bank Bank Of Maharashtra ICICI Bank Union Bank IFCI J&K Bank Axis Bank and Srei Equipment Finance.

Jaypee Infratech is developing about 32000 flats of which it has delivered 9500 units. JAL had deposited Rs 750 crore in the registry of the Supreme Court for refund to buyers. However this amount was transferred to the NCLT as per an order of the apex court.