Jaypee Infra Insolvency: NBCC, Suraksha Realty Place Final Bids, Sweeten Offers
State-owned NBCC (India) Ltd. and Mumbai-based Suraksha Realty on Tuesday offered more land parcels to lenders in their final bids to acquire bankrupt realtor Jaypee Infratech through the insolvency process, sources said.
Lenders had asked both the suitors to sweeten their resolution plans and submit their bids by Dec. 3. This is the third round of bidding process for the resolution of debt-ridden Jaypee Infratech, which is a subsidiary of Jaiprakash Associates Ltd.
According to sources, Suraksha Realty is in discussions with the JSW group for technical and operational support to complete pending housing projects of Jaypee Infratech. NBCC in its final bid has offered 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres. For homebuyers, it has reduced the deadline for the completion of over 20,000 flats to three-and-a-half years from the earlier four years.
As sought by the lenders, NBCC has withdrawn its earlier two offers -50 percent share in profit on sale of unclaimed flats and 75 percent of 858-acre land parcels, which has been pledged by the promoter JAL and currently under litigation.
For lenders, the public sector firm has proposed to increase concession agreement by 10 years on Yamuna Expressway, which it has proposed to transfer it to bankers. However, NBCC has proposed to take Rs 2,500 crore debt against toll income of the expressway, which connects Noida and Agra, for completion of pending flats.
On the other hand, Suraksha Realty has also sweetened its resolution plan, by offering 2,220 acres of land worth Rs 9,800 crore under the land-debt swap deal. Earlier, it had offered 1,934 acres of land worth Rs 7,857 crore. This will cover the entire claim of lenders which is Rs 9,800 crore.
It has increased upfront cash payment to lenders to Rs 175 crore from Rs 25 crore earlier.
For homebuyers, Suraksha Realty has now set aside Rs 250 crore worth land as against land parcels worth Rs 100 crore earmarked earlier.
Further, it has promised to provide additional land parcels worth Rs 250 crore to homebuyers, if 858 acre land under the litigation comes back to Jaypee Infratech.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an interim resolution professional to conduct the insolvency process and also manage the affairs of the company.
In the first round of insolvency proceedings conducted last year, Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.
The Committee of Creditors rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.
The matter reached to NCLAT and then the Supreme Court.
On Nov. 6, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 percent votes. For a bid to be approved, 66 percent votes are required. Homebuyers claim amounting to over Rs 13,000 crore has been admitted.