Financial creditors and home buyers of Jaypee Infratech will meet Friday to discuss the bids submitted by state-owned NBCC and Mumbai-based Suraksha group to take over the bankruptcy-bound realty firm and complete stalled projects comprising over 20,000 housing units.
A meeting of the Committee of Creditors (CoC) will be held on March 1, said Anuj Jain, the Insolvency Resolution Professional (IRP) of Jaypee Infratech, in a regulatory filing.
In a separate filing, Jain said the lenders have rejected a resolution to "conduct the addition forensic audit of corporate debtor (Jaypee Infratech) from Date of Incorporation till March 2014" after voting process.
The filing did not disclose the agenda of Friday's meeting, but sources said it has been called to further discuss the resolution plans submitted by NBCC and Suraksha group.
Sources said the settlement proposal of promoter Jaypee group will not be discussed in the CoC meet, but lenders could deliberate on it separately.
In the last meeting on February 18, NBCC and Suraksha made presentations before the CoC. Jaypee group promoters were also present at the meeting.
Jaypee group's flagship firm Jaiprakash Associates Ltd (JAL) has once again submitted a proposal to the lenders of its subsidiary firm Jaypee Infratech for settling dues worth Rs 10,000 crore.
This is the second time in less than a year that JAL has sought to retain control of its cash-strapped subsidiary. The latest offer is almost similar to what JAL offered last year to lenders and home buyers.
In April last year, JAL had made an unsolicited offer of about Rs 10,000 crore to settle the dues of Jaypee Infratech. It had also offered 2,000 equity shares each to buyers.
The National Company Law Tribunal (NCLT) in 2017 had admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech and appointed Jain as IRP to manage the company's business and invite bids from investors.
In the first attempt to complete the insolvency process, lenders had rejected the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, as it found it to be substantially lower than the company's net worth and assets.
Therefore, the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech on the NCLT's direction.
In this round, NBCC has promised to deliver flats to home buyers in four years. It has also offered 1,400 acre land worth Rs 6,000 crore as well as Yamuna Expressway highway to lenders.
NBCC has suggested that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 crore) to the PSU, which will utilise this fund as an upfront payment. NBCC will also fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.
In contrast, Suraksha group has made an offer of about Rs 20 crore as upfront payment and land worth Rs 5,000 crore, sources said. The Mumbai-based group has promised to complete pending projects in three years.
The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. 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 is developing about 32,000 flats, of which it has delivered 9,500 units. JAL had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to NCLT as per an order of the apex court.
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