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.
Lenders of Jaypee Infratech on June 10 decided to put to vote the revised bids of government’s construction arm NBCC Ltd and Mumbai-based Suraksha Group to acquire the bankrupt real estate firm. The voting process will start on June 14 and end on June 23, Anuj Jain, IRP told Moneycontrol.
Interim Resolution Professional (IRP) Anuj Jain is managing JIL and running the bankruptcy proceedings. Both NBCC and Suraksha Group are in the fray to acquire the embattled firm Jaypee Infratech Ltd (JIL) and complete over 20,000 flats for which homebuyers have been waiting for almost a decade.
Both the plans have been found to be compliant. “I have submitted the compliance report,” he said.
A decision to put the resolution plans to vote from June 14 to June 23 was taken at a meeting of Committee of Creditors (CoC) held on June 10. This will be the fifth round of bidding process.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
In December 2019, the CoC approved the resolution plan of NBCC with a 97.36 percent vote in favour during the third round of the bidding process. In March 2020, NBCC received approval from the NCLT to acquire JIL but the order was challenged before the NCLAT and later the Supreme Court, which on March 24 this year ordered that fresh bids should be invited only from NBCC and Suraksha.
The Supreme Court had also directed that the resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed by the IRP to extend the timeline for finding a buyer for JIL until July 7.
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 had confirmed to Moneycontrol.
The CIRP process of JIL is to be completed by July 7, he said.
Jain had earlier filed an application seeking extension on May 7.
Jain had 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 7 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 were taken up for discussion at the CoC meeting on June 10.
Suraksha Group had 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.
Suraksha Group had offered more than 2,600 acres land to institutional financial creditors in its last bid submitted on May 18.
Improving the offer, Suraksha has now promised to issue NCDs (non-convertible debentures) worth Rs 1,200 crore to banks, taking its total offer to nearly Rs 7,800 crore. For homebuyers, the company has reduced the timeline of completion of some projects, wherever feasible. For homebuyers, the company has reduced the timeline of completion of some projects, wherever feasible.
Moreover, Suraksha Group will immediately infuse Rs 300 crore if its bid is approved by the CoC to ensure construction works are not hampered till the resolution plan gets approved by the National Company Law Tribunal (NCLT).
NBCC has decided to offer 1,100 acres of additional land valued at more than Rs 2,200 crore to dissenting creditors, sources said.
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.