A security guard walks towards residential buildings under construction at the Jaypee Wish Town Project. (Photographer: Prashanth Vishwanathan/Bloomberg)

Kotak, L&T, Three Others Express Interest In Bankrupt Jaypee Infratech

NBCC Ltd., Kotak Investment, L&T Infrastructure, Singapore-based Cube Highways, and Suraksha group—have shown interest in taking over debt-ridden Jaypee Infratech Ltd., which is facing bankruptcy proceedings in the National Company Law Tribunal.

Jaypee Infratech's Interim Resolution Professional Anuj Jain had in October initiated a fresh initiative to revive Jaypee Infratech on NCLT's direction after lenders rejected Suraksha Group’s bid worth over Rs 7,000 crore.

Jain had invited expression of interest from companies to submit resolution plan to revive Jaypee Infratech Ltd, which has many housing projects stuck in Noida and Greater Noida.

The IRP has received five expressions of interest from interested parties, Jaypee Infratech said.

Of the five companies, only L&T Infrastructure is interested in the 165-km Yamuna Expressway and not for the development of land parcels attached to the expressway belonging to Jaypee Infratech.

Also read: Why Lenders To Jaypee Infratech Rejected The Highest Bid On The Table

In an exchange filing, state-owned NBCC said it had submitted the EoI for submitting resolution plan for Jaypee Infratech and the company had been provisionally shortlisted by IRP of Jaypee as a prospective resolution applicant.

Suraksha Asset Reconstruction has shown interest along with its entities Lakshdeep Investments and Finance and Suraksha Realty.

Last year, the NCLT admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to manage the company's business. He later invited bids from investors interested in acquiring Jaypee and in completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshdeep had emerged as a frontrunner to acquire Jaypee. However, in May, the Jaypee Infratech lenders rejected the Rs 7,350 crore bid by Lakshdeep as they found it inadequate.

Jaypee Infratech 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.

Also read: Supreme Court’s Jaypee Infra Verdict: Have The Homebuyers Really Won?

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 the order of the apex court that has now directed to start a fresh bidding process.

Recently, lenders of Jaypee Infratech have rejected a proposal to appoint Vijaykumar V Iyer as new resolution professional. The Committee of Creditors of Jaypee Infratech had met on Oct. 17 to vote on various proposals.