The state-owned NBCC and the Suraksha group are seeking to acquire Jaypee Infratech. They have submitted revised proposals and improved their proposals to financial lenders as part of the insolvency resolution process. According to sources, NBCC and the Suraksha group presented their revised proposal on Monday. Suraksha group has now offered a credit of Rs 3,000 crore as working capital for the construction of the project compared to the previous offer of Rs 2,000 crore.
It has also given undertaking or promised to cover any shortcomings from dissenting creditors.
NBCC offers up to 1,903 acres of land, and Suraksha Group has offered over 2,600 acres to lenders. The Suraksha Group has allocated 1,486 acres to dissident lenders out of the total land area proposed in the proposal.
NBCC has offered an additional 377 acres of land in the event that dissenting financial lenders are dissatisfied with their original 1,525-acre offerings bringing their total offer to around 1,903 acres.
Fourth round bidding
The Suraksha group has offered to keep the Yamuna Expressway project, NBCC has offered to transfer more than 80 percent of its stake in the project to lenders.
This is the fourth round of the Jaypee Infratech bidding process, which began insolvency proceedings in August 2017. The lawsuit was initiated following a plea bargain by a consortium led by IDBI. In March this year, the Supreme Court referred the CoC (Committee of Creditors) to approve Jaypee Infratech’s resolution plan. Which states that no new expressions of interest are expected to acquire the company and only NBCC and Suraksha Realty could submit revised proposals.
The Supreme Court also decided to extend the conciliation process by 45 days, which has now expired. In March 2020, NBCC received approval from the NCLT to acquire Jaypee Infratech.
Jaypee Infratech went into insolvency proceedings or filed for bankruptcy in August 2017. Anuj Jain has been appointed a temporary Interim Resolution Professional (IRP) to handle the bankruptcy proceedings as well as manage the company’s affairs.
In the first round of insolvency proceedings, lenders rejected an offer of Rs 7350 crore from Lakshadweep, a member of the Suraksha group. CoC rejected bids from Suraksha Realty and NBCC in the second round, held in May-June 2019.
The case then referred to the National Company Law Court of Appeals (NCLAT) and then to the Supreme Court. On November 6, 2019, the Supreme Court decided to end Jaypee Infratech’s bankruptcy proceedings within 90 days. And ordered that the revised liquidation plan should only be invited to NBCC and Suraksha Realty.
In December 2019, the CoC, consisting of 13 banks and about 21,000 home buyers, approved NBCC’s resolution plan and received 97.36% of the votes in the third round of the bidding process.