NBCC, Suraksha Bid To Acquire Bankruptcy-Bound Jaypee Infratech
NBCC, Suraksha want to take over Jaypee Infratech and finish over 20,000 pending projects.
State-owned NBCC (India) Ltd. and Mumbai-based Suraksha Group have submitted bids to take over bankruptcy-bound Jaypee Infratech and complete stalled housing projects in Noida, sources said.
The value of the bids could not be immediately ascertained. NBCC Chairman and Managing Director Anoop Kumar Mittal said the company is “keen to acquire” Jaypee Infratech and complete over 20,000 pending housing units.
Mittal declined to share the bid value but said the resolution plan submitted by the company is beneficial for all stakeholders, including banks, homebuyers and NBCC.
NBCC, in an exchange filing, said it has submitted the bid to interim resolution professional Anuj Jain.
Jain, who is carrying out the insolvency process, had earlier shortlisted four players— NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha Group—to submit their resolution plans by Feb. 15.
Kotak Investment and Cube Highways have not submitted bids, sources said.
A meeting of the committee of creditors will be held on Feb. 18 to discuss bids.
In October 2018, Jain started a fresh initiative to revive Jaypee Infratech on the National Company Law Tribunal’s direction after lenders rejected the over Rs 7,000-crore bid of Suraksha Group.
He invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.
In 2017, the National Company Law Tribunal had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code. The tribunal had appointed Jain as interim resolution professional to manage the company’s business and invite bids from investors.
Consequently, Lakshdeep, part of Suraksha group, had emerged as the front runner to acquire the firm. However, in May last year, lenders rejected the Rs 7,350-crore bid by Lakshdeep as they found the amount to be inadequate.
The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. 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, a subsidiary of Jaypee Group’s flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.
Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to the NCLT as per an order of the apex court.