Lenders of debt-ridden company are expected to meet on April 26 to discuss revised bids of NBCC and Suraksha Group and also decide whether Adani Group can be allowed to enter the race at this stage
State-owned NBCC, that had been asked to sweeten its offer for acquiring the Jaypee Group’s realty arm and completing over 20,000 housing units, on April 24 submitted its revised bid, sources said.
Lenders of the embattled company are expected to meet on April 26 to discuss the revised bids of NBCC and Suraksha Group.
Suraksha had earlier submitted its revised bid.
Details of the revised offers by NBCC and Suraksha were not immediately available.
In its earlier resolution plan, NBCC had offered 1,400-acre land worth Rs 6,000 crore as well as Yamuna Expressway to lenders.
It had proposed that banks 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, Suraksha Group made an offer of about Rs 20 crore as an upfront payment and land worth Rs 5,000 crore. The Mumbai-based group promised to complete the pending projects in three years.
Business conglomerate Adani Group had also entered the fray by putting in a bid to acquire Jaypee Infratech. Lenders will also have to decide on Friday whether the company would be allowed to enter the race at this stage.
The National Company Law Tribunal (NCLT) in 2017 had admitted the application of a consortium led by IDBI Bank seeking resolution of Jaypee Infratech, and appointed Anuj Jain 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 Jaypee Infratech.
Last week, promoter of embattled real estate firm Jaypee Infratech Manoj Gaur had again offered to complete the much-delayed real estate projects within a period of four years by pumping in Rs 1,500 crore in an escrow account. However, homebuyers were sceptical and termed the meeting held on Friday as an ‘eyewash’, ‘old wine in new bottle’ and questioned the timing of the meeting. They said the meeting was called to garner support from buyers whose approval is required for any resolution plan or settlement plan to go through.
During the meeting with homebuyers, Gaur claimed he was a ‘victim of circumstances’ and proposed that Rs 1,500 crore be kept in an escrow account.
Briefing reporters on the sidelines of the meeting, Ajit Kumar, adviser Jaypee Group, said the company is aware of the problem faced by homebuyers. “We have submitted a proposal under Sec 12A of the IBC procedure in April. To begin with, we will set aside Rs 1500 crore in an escrow account, which will be monitored by a committee. The entire amount will be used for the construction and completion of the houses. The monitoring committee would constitute a retired judge of a Supreme Court, a technical member and I will be the convenor, he had said.
“It’s been 18 months since the resolution process is on and there is still no solution. Our chairman has apologised for the delay. We need one more chance. The final decision ultimately lies with the NCLT. Today we have made a presentation to the buyers. We are committed to deliver their houses. The houses in Wishtown will be delivered within three years and the remaining will delivered within the next one year. All houses will be delivered within four years. A 100-acre land parcel worth Rs 500 crore has been set aside. Besides we also have unsold inventory and payments due from homebuyers that would be utilized for completion,” Kumar had said.
As many as 22,000 homebuyers are stuck because of significant delay in delivery of flats by Jaypee group's debt-ridden firm Jaypee Infratech, which is undergoing insolvency proceedings.
The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.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 Supreme Court for refund to buyers. However, this amount was transferred to the NCLT as per an order of the apex court.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.