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Jaypee Infratech case: IRP files application before SC seeking extension of CIRP by 30 days

The CIRP process of JIL is to be completed by July 7

On May 23, the Chairman of Jaiprakash Associates (JAL) Manoj Gaur wrote a letter to the IRP, urging him to consider JAL's settlement offer, which was submitted before the Supreme Court in 2019.

On May 23, the Chairman of Jaiprakash Associates (JAL) Manoj Gaur wrote a letter to the IRP, urging him to consider JAL's settlement offer, which was submitted before the Supreme Court in 2019.

Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain has filed an application before the Supreme Court seeking an extension of 30 days for completion of the corporate insolvency resolution process by the first week of July.

“I had filed an application on June 3 seeking further extension by 30 days for completion of the CIRP process,” Jain confirmed to Moneycontrol.

The CIRP process of JIL is to be completed by July 7, he said.

The 45 days' time granted by the Supreme Court to complete the Corporate Insolvency Resolution Process (CIRP) expired on May 8.

Jain had earlier filed an application seeking extension on May 7.

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He also said that decisions taken by the CoC after May 8 relating to the approvals of resolution plans submitted by NBCC and Suraksha Group will be subject to the decision of the apex court on the two applications filed on May 6 and June 3 seeking extension.

The Committee of Creditors of embattled firm Jaypee Infratech on June 7 had sought some clarifications on the revised bids submitted by the government’s construction arm NBCC and Mumbai-based Suraksha Group. The two plans would be taken up for discussion at the next CoC meeting on June 10, Jain had told Moneycontrol earlier.

He had also confirmed that Suraksha Group submitted its plan just before the start of the CoC meeting on June 7.

“Suraksha Group submitted its resolution plan almost half an hour before the meeting. We have not gone through it right now but the CoC decided to consider it as well,” Jain had said.

While NBCC had submitted its revised resolution plan under the insolvency process to acquire debt laden realty firm Jaypee Infratech on June 4, Suraksha Group submitted its bid just before the 23rd meeting of JIL's creditors panel got underway on June 7.

Suraksha Group has offered to deposit Rs 300 crore upfront if its bid was approved by the CoC to ensure construction works do not hamper till the resolution plan gets approved by National Company Law Tribunal (NCLT).

It has also increased the aggregate offer to institutional financial creditors by Rs 1,298 crore and reduced the construction timelines that were proposed in the earlier bid, the revised bid said.

NBCC has decided to offer 1,100 acres of additional land valued at more than Rs 2,200 crore to dissenting creditors, sources said.

Suraksha Group had offered more than 2,600 acre land to institutional financial creditors in its bid submitted on May 18. Improving the offer, it then promised to issue NCDs (non-convertible debentures) worth Rs 1,200 crore to banks, taking its total offer to nearly Rs 7,800 crore.

In a letter to Interim Resolution Plan (IRP) Anuj Jain, Suraksha group on June 4 had said that it had already submitted a legally compliant resolution plan on May 18 and the bid was deliberated upon in the meeting of the CoC.

Suraksha had said it plans to further revise the resolution plan to improve offering for both homebuyers and bankers.

Stating that the company never asked for any extension and always submitted bid before deadline, Suraksha had said: "we request you to grant us time of at least 7 days to submit an improved revised resolution plan, in the interest of lenders and homebuyers."

On May 27, Jaypee Infratech’s lenders had voted for extending the bidding process allowing both the companies to submit their revised bids by June 4 to acquire the embattled firm through an insolvency process and complete the 20,000 homes that have been delayed by almost a decade.

In their previous bids, NBCC had offered 1,526 acre land. On Yamuna Expressway, NBCC had proposed to offer 85 percent equity in the road asset to lenders and had said that it will retain 18 percent share. In the 2019 bid, it had proposed 100 percent transfer of the highway.

In the fourth round of the bidding, Surakasha group had proposed to give 2,651 acres of land parcels to lenders. It has earmarked 1,486 acre to dissenting lenders out of the total land parcels offered in the proposal.

Suraksha group had decided to keep Yamuna Expressway with itself. It had also proposed a line of credit of Rs 3,000 crore as working capital for construction of projects. It also gave an undertaking that any shortfall to the dissenting creditors will be met by the company through pumping of more funds or assets.

The two firms had earlier offered to complete the projects within 42 months.

JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. As many as 20,000 homebuyers have been waiting to get delivery of their homes for almost a decade.
Vandana Ramnani
first published: Jun 9, 2021 08:52 pm

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