Jaypee Infratech crisis: Lenders ask NBCC, Suraksha Realty to sweeten offers, submit final bids by 3 December
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
Mumbai-based Suraksha Realty was told to increase the upfront payment to lenders from the existing offer of mere Rs 25 crore
To settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC has offered 1,426-acre land worth Rs 5,000 crore
NBCC offered to share 50% of the sale proceeds of unclaimed flats after deducting receivables from earlier buyers and any expenses related to tax/duties/legal
New Delhi: Bankrupt realtor Jaypee Infratech's lenders on Thursday asked its top suitors NBBC and Suraksha Realty to make a final offer by next Tuesday after revising their earlier bids by removing impediments and making it more lucrative for homebuyers as well as banks.
The Committee of Jaypee Creditors met NBBC and Suraksha representatives for several hours to discuss threadbare their takeover offers, before asking them to further revise the bids, sources with direct knowledge of the development said.
They wanted NBCC to provide more land with clear title in lieu of its current offer of over 600 acres land that is under litigation and some unclaimed flats. Also, they wanted complete Yammu Expressway Project without any debt obligation.
Mumbai-based Suraksha Realty was told to increase the upfront payment to lenders from the existing offer of mere Rs 25 crore, they said.
Homebuyers, who have been declared as financial creditors, asked the NBCC to compensate for huge delay in completion of flats. Suraksha Realty, which has set aside land worth Rs 100 crore for delay compensation, was told to enhance the amount.
In the meeting of Committee of Creditors (CoC), the officials of both NBCC and Suraksha said demand of financial creditors would be considered positively.
NBCC and Suraksha submitted fresh bids on 17 November as per the direction of the Supreme Court.
According to the sources, bankers asked NBCC to provide more land with a clear title instead of unclaimed flats and over 600 acres under litigation. Lenders also asked that the expressway should be transferred to them without any debt obligation.
To settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC has offered 1,426-acre land worth Rs 5,000 crore. That apart, it has offered 75 percent of 858-acre land, which has been pledged by promoter Jaiprakash Associates Ltd and now claimed by Jaypee Infratech.
Moreover, NBCC offered to share 50 percent of the sale proceeds of unclaimed flats after deducting receivables from earlier buyers and any expenses related to tax/duties/legal.
Yamuna Expressway, which connects Noida to Agra, will be transferred to lenders, but before that NBCC has proposed to take Rs 2,500 crore debt against the expressway for completion of over 20,000 flats in the next four years.
During the meeting, the NBCC official asserted that the public sector has already met all previous demands of lenders made in May, including the increase in land-debt swap deal to 1,426 acre from 950 acre.
NBCC board could meet tomorrow to discuss the demand made on Thursday and finalise its resolution plan.
Suraksha Realty has offered 1,934 acres worth Rs 7,857 crore to lenders. It has proposed to bring in Rs 2,000 crore as working capital to complete construction in the next three years and will retain the Yamuna Expressway with itself. The Mumbai-based developer has proposed to complete flats in the next three years as against 4 years deadline promised by NBCC.
In the meeting, homebuyers representative demanded that delay compensation should be paid to home buyers as promised by Jaypee Infratech. The compensation for future delays should be as per realty law RERA.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an Interim Resolution Professional to conduct the insolvency process and also manage the affairs of the company.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
On 6 November, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 percent votes. For a bid to be approved, 66 percent votes are required. Homebuyers claim amounting to over Rs 13,000 crore has been admitted.
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NBCC's proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.
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In its bid, the NBCC had proposed to complete over 20,000 pending flats in housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh).
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Financial creditors and home buyers of the Jaypee group realty firm are currently voting on the bid of Suraksha Realty,