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Jaypee Infratech lenders seek revised bids from NBCC, Suraksha Group

Press Trust of India  |  New Delhi 

Lenders of debt-ridden met Thursday here to discuss bids of state-owned and 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 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 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 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 1,400 acre land worth Rs 6,000 crore as well as to lenders.

It proposed that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 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 1,500 crore between estimated construction cost and receivables from customers.

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

Law Tribunal (NCLT) in 2017 had admitted the application of a consortium led by seeking resolution of Jaypee Infratech, and appointed 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 7,350 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 on the NCLT's direction.

Sources had earlier said the settlement proposal of promoter 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 (JAL) has sought to retain control of its 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 10,000 crore to settle the dues of It had offered 2,000 equity shares each to the buyers.

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 deposited Rs 750 crore in the registry of the for refund to buyers. However, this amount was transferred to the NCLT as per an order of the apex court.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 20:21 IST
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