Suraksha group sweetens offer for Jaypee Infra by Rs 1,298 crore

CoC to meet on June 10 to decide on voting on NBCC, Suraksha offers

Mumbai-based Suraksha group has sweetened its offer to the lenders of Jaypee Infratech by Rs 1,298 crore to Rs 7,736 crore.
 
It promised to bring in an additional interim funding of Rs 300 crore to build houses faster for Jaypee customers.
 
This offer was made on Monday to the company’s committee of creditors (CoCs).
 

Jaypee Infratech was referred to the National Company Law Tribunal (NCLT) in August 2017 after the company failed to repay its Rs 22,000-crore debt. Since then, various litigation and CoC's flip flop has delayed the resolution. Apart from Suraksha, government-owned NBCC has also made an offer for the company. Both the offers include giving part of the land bank to the lenders and home owners to clear past dues.

 
The CoC, in which homeowners are playing an important role, will meet again on June 10 to decide on the voting on both offers.
 
In its presentation, NBCC is offering 100 per cent of the land bank company’s shares to the financial creditors who agreed to the resolution plan.
 
NBCC also agreed to transfer 90 per cent stake in the expressway SPV, including concession rights of the Yamuna Expressway and land.
 
The offer will include 4,660 acres of expressway land and 137.85 acres of commercial land for development of facilities along the Yamuna Expressway.
 
NBCC also offered an additional 100 acres, which will be earmarked for payment to the home buyers on account of past delay penalty on a pro-rata basis.

 
The owners are waiting for over 11 years to get the keys to their homes. Jaypee Infratech owns the Delhi-Agra expressway and the land around it. Hence, interest is being shown by both the construction firms — NBCC and the Suraksha group.
 
NBCC said its plan includes raising fresh debt by way of non-convertible debentures (NCDs) to be issued by the expressway SPV, amounting to Rs 2,000 crore. Simultaneously, the expressway SPV will avail of fresh debt from the lenders by securitising future toll cash flow receivables pertaining to the Yamuna Expressway and utilise this to redeem the NCDs.

 
NBCC said it will sell the hospital business and use the proceeds to retire debt of the lenders.
 
The lenders will send both the plans to their legal team before taking a decision on voting. This is the fourth round of bidding for the company, and according to a Supreme Court order of March 24, the resolution plan has to be completed within the deadline. The lenders plan to extend the deadline by another 30 days.