You are here: Home » Companies » News
Business Standard

Insolvency: Promoters submit Rs 100 bn revival plan for Jaypee Infratech

In its resolution plan, Jaypee has offered a haircut of Rs 2.3 billion to the lenders, while Lakshadweep has offered to buy the realty firm at a hair cut of Rs 28 billion

Veena Mani & Karan Choudhury  |  New Delhi 

Deposit money as directed, Tihar is not far, Supreme Court warns Jaypee
Jaypee Infratech

group chairman made a fresh effort to gain back control of Infratech — a real estate company for which another firm has already been named the highest bidder under the ongoing insolvency proceedings.

In its resolution plan, submitted to the (CoC) and the resolution professional, Gaur promised a marginal haircut to Infratech lenders and minority shareholders and possession of homes by 2021. Lakshadweep Pvt Ltd — the firm CoC has chosen as the highest bidder — has offered to give possession to the by 2024. Lakshadweep a joint venture of Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.

The CoC will vote on Lakshadweep’s resolution plan on Tuesday. If Lakshadweep’s bid is approved, the resolution plans by both Jaypee and Lakshadweep are likely to be put before the (SC), sources said.

The SC had earlier asked a “competent authority” to hear Jaypee’s proposal to regain control of the real estate arm. It had also asked to submit an amount with the SC, in case the need to be compensated. had submitted Rs 7.5 billion to the SC after the order.

ALSO READ: NCLT suggests IBBI to review insolvency code regulations to curb misuse

In its resolution plan, Jaypee has offered a haircut of Rs 2.3 billion to the lenders, while Lakshadweep has offered to buy the realty firm at a hair cut of Rs 28 billion.

It has also offered 2,000 equity shares each in Jaypee Infratech, sources said. As many as 32,000 homebuyers are yet to get possession of flats. A 50 per cent discount on stamp duty and free maintenance are also in the offing, sources said.

Lakshadweep is arranging a loan of Rs 40 billion from banks and writing down existing equity to the extent of 99.99 per cent. The Jaypee group, on the other hand, has said it would arrange Rs 27 billion through toll monetisation and Rs 10 billion through additional working capital, sources said.

ALSO READ: Insolvency: Ramdev's Patanjali makes over Rs 40-bn bid for Ruchi Soya

While Lakshadweep promised an upfront payment of around Rs 20.29 billion, the has proposed to pay Rs 12.55 billion.

As for operational creditors, the plan proposes to pay around Rs 4 billion as opposed to a waiver sought by Lakshwadeep, sources said.

First Published: Tue, May 08 2018. 00:23 IST
RECOMMENDED FOR YOU