Jaypee insolvency: Lenders meet on Nov 28 to review NBCC, Suraksha bids

Lenders of Jaypee Infratech will meet on November 28 for further discussions on bids submitted by state-owned NBCC and Mumbai-based Suraksha Realty to acquire the debt-laden realty firm in the ongoing insolvency process.

In a regulatory filing, Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain said "a meeting of Committee of Creditors will be held on 28th November, 2019." The agenda of the meeting was not disclosed.

However, sources said lenders will continue discussions with both the contenders.

Earlier this week, the Committee of Creditors (CoC) discussed the fresh bids submitted by NBCC Ltd and Suraksha Realty, which were sought as per the direction of the Supreme Court. This is the third round of bidding.

In the meeting held on November 18, senior officials of NBCC and Suraksha Realty made their presentations before the CoC and highlighted main features of their resolution plans to revive Jaypee Infratech.

NBCC and Suraksha might be asked to submit their final plans after the next CoC meet on November 28 and voting process could be conducted before December 10.

As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 per cent votes. For a bid to be approved, 66 per cent votes are required.

To settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC has offered 1,426 acre land worth Rs 5,000 crore, 75 per cent of 858 acres land to be transferred to Jaypee Infratech and 50 per cent of the sale proceeds of benami or unclaimed flats. From the sale proceeds, receivables from earlier buyers and any expenses related to tax/duties/ legal will be deducted.

Sources had said that there are about 3,000 such unclaimed units.

The public sector firm has proposed to transfer the Yamuna Expressway, which connects Noida and Agra, to the lenders, but before that it plans to take Rs 2,500 crore debt against the expressway for completion of over 20,000 flats in the next four years.

Sources had said NBCC has pegged the value of 640 acres land (75 per cent of 858 acres) at around Rs 2,500 crore, while the Yamuna Expressway has been valued at Rs 2,000 crore after deducting the debt.

Meanwhile, Suraksha Realty has offered 1,934 acres worth Rs 7,857 crore to lenders. It proposed to bring in Rs 2,000 crore as working capital to complete construction in the next three years and will retain the Yamuna Expressway with itself.

The Mumbai-based developer has proposed to complete flats in the next three years.

On delays compensation, NBCC has proposed Rs 5 per sq ft per month to be payable after grace period of one year from the scheduled delivery date, while Suraksha has offered Rs 10 per sq ft post grace period of 9 months.

Suraksha Realty has proposed that any liabilities towards farmers compensation would be extinguished and not passed on to homebuyers, while NBCC has stated that it should be collected from end user including homebuyers and development authority.

That apart, Suraksha Realty has proposed to set aside Rs 100 crore worth land for the welfare of homebuyers.

Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.

In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.

The matter reached to the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.