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Jaypee Infra's promoter makes second attempt to settle dues of Rs 10,000 cr

In the first round, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets

Press Trust of India  |  New Delhi 

Jaypee infratech

Crisis-hit Jaiprakash Associates has once again submitted a proposal to lenders of its subsidiary Infratech for settling dues worth Rs 10,000 crore, amid bids for taking over the realty firm under the insolvency process.

This is the second time in less than a year that (JAL) has sought to retain control of the The latest offer also comes close on the heels of state-owned and realty firm group putting in bids for Infratech.

"The promoter JAL also submitted a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code(IBC), 2016 for consideration of the Committee of Creditors," Infratech said in a regulatory filing.

However, it did not disclose the details of settlement proposal. This section provides for withdrawal of bankruptcy application subject to certain conditions.

In April last year, JAL had made an unsolicited offer of about Rs 10,000 crore to settle dues of

Meanwhile, lenders of in a meeting on Monday decided to negotiate with and group. Both made presentations before the (CoC).

promoters were also called in the meeting.

In 2017, the National Company Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of

The tribunal had appointed as insolvency resolution professional (IRP) to manage the company's business and invite bids from investors. This is the second attempt by the IRP and lenders to complete insolvency process.

In the first round, the Rs 7,350 crore bid of Lakshdeep, part of group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets.

As per sources, in its bids has promised to deliver flats to homebuyers in four years. It has also offered 1,400 acre land worth Rs 6,000 crore as well as highway to lenders.

NBCC has suggested that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 crore) to the PSU, which will utilise this fund as an upfront payment. NBCC will also fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.

In contrast, Suraksha group has made an offer of about Rs 20 crore as upfront payment and land worth Rs 5,000 crore, sources said. The Mumbai-based group has promised to complete pending projects in three years.

In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT direction after lenders rejected the over Rs 7,000-crore bid of Suraksha group.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, and

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 units. JAL had submitted Rs 750 crore in the registry of the for refund to buyers. However, this amount was transferred to NCLT as per an order of the apex court.

First Published: Tue, February 19 2019. 19:40 IST