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Jaypee insolvency: Revised bids by NBCC and Suraksha Group to be discussed at CoC meeting on May 15

NBCC is offering up to 1,903 acres of land while Surakasha group has proposed over 2,600 acres to the lenders. Suraksha group has earmarked 1,486 acres to dissenting lenders out of the total land parcels offered in the proposal

The revised plans by public sector construction firm NBCC and Mumbai-based Suraksha Group under an insolvency process to acquire debt-laden realty firm Jaypee Infratech would be discussed at the 20th committee of creditors meeting to be held on May 15, sources said.

The Jaypee Infratech case involves more than 20,000 homebuyers who have been anxiously waiting for the completion of their homes for over a decade.

NBCC and Suraksha group submitted their revised bids on May 10.

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and in accordance with the requirements of sub-clause 16(g) of Clause A of Part A of Schedule III of LODR, we wish to inform you that a meeting of Committee of Creditors will be held on 15th May, 2021…,” Jaypee Infratech said in a regulatory filing on May 12.

Suraksha group has now offered a line of credit of Rs 3,000 crore as working capital for construction of projects as against the earlier proposal of Rs 2,000 crore, sources said, adding it has also given an undertaking that any shortfall to the dissenting creditors will be met.

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NBCC is offering up to 1,903 acres of land while Surakasha group has proposed over 2,600 acres to the lenders. Suraksha group has earmarked 1,486 acres to dissenting lenders out of the total land parcels offered in the proposal.

NBCC has provided an additional 377 acres of land in case dissenting financial creditors are not satisfied with its original offer of 1,526 acre, taking its total offer to up to 1,903 acre. While Suraksha group has proposed to keep Yamuna Expressway road project, NBCC has offered to transfer over 80 per cent of the stake in the project to the lenders.

NBCC has incorporated some of the suggestions made by homebuyers on the resolution plan submitted by it on April 28, 2021. One of them includes tower wise schedule of delivery. They have shortened the delivery timelines and would be delivering 70% (around 13,000) of the units within 30 months. All units, including plots would be delivered within 42 months.

NBCC has also proposed to set up a single-window redressal system to help resolve grievances of homebuyers. The single-window redressal system would be put in place after the transfer date, sources said.

It has also considered homebuyers’ representative in the steering committee, sources said.

Last week, the Interim Resolution Professional (IRP) Anuj Jain had approached the Supreme Court asking for an extension of the corporate insolvency resolution process (CIRP) by a month.

In an application filed before the Supreme Court, the IRP has said that the completion of the resolution process within 45 days has become unfeasible due to the current surge in Covid-19 pandemic and restrictions imposed by different states, sources said.

In an application filed before the Supreme Court, the IRP has said that the completion of the resolution process within 45 days has become unfeasible due to the current surge in Covid-19 pandemic and restrictions imposed by different states, sources said.

The IRP had convened the 17th meeting of the CoC on April 12, 2021 to discuss the resolution plans submitted by NBCC and Suraksha. Both NBCC and Suraksha had submitted their revised resolution plans on April 28.

In the 18th meeting of the CoC held on April 17, lenders had asked NBCC and Suraksha group to improve their bid and offer more land parcels under the land-debt swap deal. They had also asked the bidders to specify the treatment of dissenting financial creditors.

The 19th meeting of the CoC was convened on April 29, 2021.

Suraksha Group had held a meeting with homebuyers on May 2, 2021 and NBCC held one on May 7, 2021 for discussions/suggestions on the resolution plan of Jaypee Infratech.

On March 24, the Supreme Court had directed the interim resolution professional of Jaypee Infratech to invite modified or fresh resolution plans only from Suraksha Realty and state-run NBCC and complete insolvency proceedings in 45 days. The timeline ends on May 8.

The apex court had also said that Rs 750 crore deposited by Jaypee Associates would not go to Jaypee Infratech and that NBCC would not be allowed to utilise it for construction.

It had said, “However, the final treatment of the said amount of Rs 750 crores with accrued interest shall be determined by NCLT after the reconciliation of accounts between JAL and JIL and in terms of the directions contained in this judgment”.

Financial creditors of debt-ridden Jaypee Infratech, including banks and homebuyers, met on April 29 and held discussions on the revised resolution plans submitted by the two entities. The case involves more than 20,000 homebuyers who have been anxiously waiting for the completion of their homes for over a decade.

This is the fourth round of the corporate insolvency resolution process.

In November 2019, the top court had directed the completion of Jaypee Infratech's insolvency process within 90 days and the revised resolution plan to be invited only from the NBCC and Suraksha Realty.

More than 10,000 homebuyers and major lenders of Jaypee Infratech, including IDBI Bank and State Bank of India, had voted in favour of the resolution plan submitted by the government's construction arm NBCC to acquire the embattled real estate firm.

The CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 percent vote in favour in the third round of the bidding process.

In the same round, Mumbai-based Suraksha Realty had improved its bid to acquire Jaypee Infratech by offering more land and upfront cash to lenders.
Vandana Ramnani
first published: May 12, 2021 07:28 pm

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