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NBCC likely to submit revised bid by April 25 to buy Jaypee Infratech

NBCC and Suraksha Group are in race to acquire bankruptcy-bound realty firm Jaypee Infratech

Press Trust of India  |  New Delhi 

NBCC likely to submit revised bid by April 25 to buy Jaypee Infratech

State-owned is likely to submit revised bid by April 25 for acquiring debt-ridden Infratech and complete the housing projects.

Lenders of Infratech met on Tuesday here and asked to submit their plan by April 25 as requested by the public sector firm, sources said.

and are in race to acquire bankruptcy-bound realty firm Infratech. Separately, promoters have submitted over Rs 10,000 crore offer to settle lenders debt and complete projects but the same is not being considered.

In the last meeting, the committee of creditors (CoC) had asked both NBCC and Suraksha to sweeten their offer. NBCC had even suggested that it was ready to work as and charge fees for completing the stalled projects. In its earlier resolution plan, NBCC offered 1,400 acre worth Rs 6,000 crore as well as to lenders.

It had 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 had 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 had 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 (RP) 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 Jaypee Infratech.

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 21:40 IST