Jaypee Infra insolvency: NBCC, Suraksha asked to submit revised bids

State-owned NBCC and Suraksha group, which are in the race to acquire debt-laden Jaypee Infratech Ltd (JIL), will submit their revised bids by Tuesday.

According to sources, a meeting of Committee of Creditors (CoC) is likely to be held on May 19 to discuss the bids submitted by both the parties under the Corporate Insolvency Resolution Process (CIRP).

In the last meeting of the CoC held on Saturday, financial creditors, which includes representatives of lenders and homebuyers, discussed their bids and sought various clarifications.

During the meeting, both NBCC and Suraksha were asked to make necessary changes and submit their revised bids.

 

In this fourth round of bidding process, NBCC is offering up to 1,903 acre, while Surakasha group has proposed to give 2,651 acre to lenders.

Suraksha group has earmarked 1,486 acre to dissenting lenders out of the total land parcels offered in the proposal.

NBCC has provided an additional 377-acre land in case dissenting financial creditors are not satisfied with its original offer of 1,526 acre, taking its total offer to up to 1,903 acre.

While Suraksha group will keep Yamuna Expressway, which connects Noida to Agra, with itself, the NBCC will transfer over 80 per cent of stake in the road projects to banks and financial institutions.

Suraksha group has offered to complete the pending around 20,000 housing units in 42 months. It has proposed a line of credit of Rs 3,000 crore as working capital for construction of projects.

Suraksha group has also given an undertaking that any shortfall to the dissenting creditors will be met by the company through pumping of more funds or assets.

According to sources, a similar undertaking has been sought from NBCC as well. It is estimated that around Rs 6,000 crore will be required to complete all stalled projects. The receivables from customers against sales are estimated at around Rs 3500 crore, sources had said.

Meanwhile, Wish Town Home buyers Welfare Society and Ashish Mohan Gupta, one of the petitioners in the court case in Supreme Court, have written to the Interim Resolution Professional (IRP) Anuj Jain, seeking to know whether the bids of NBCC and Suraksha are compliant to IBC (Insolvency and Bankruptcy Code) and Supreme Court's order.

This is the fourth round of the bidding process in the matter of JIL bankruptcy case.

In March this year, the Supreme Court remitted to the CoC the issue of approval of resolution plan for Jaypee Infratech Ltd (JIL), saying no new expression of interest would be entertained for taking over the firm and only NBCC and Suraksha Realty could file revised proposals.

The apex court had also directed to extend the resolution process by 45 days, which has already lapsed.

The JIL went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.

In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders. The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.

The matter then reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, 2019, the Supreme Court directed the completion of Jaypee Infratech's insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty.

In December 2019, the CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 per cent vote in favour in the third round of the bidding process.

Then, in March 2020, NBCC had got an approval from the National Company Law Tribunal (NCLT) to acquire Jaypee Infratech.

Homebuyers' claims amounting to Rs 13,364 crore and lenders' claims worth Rs 9,783 crore were admitted last year.

The order was, however, challenged in the appellate tribunal NCLAT and later in the Supreme Court, which has now ordered to call fresh bids from the same two contenders -- NBCC and Suraksha.