Jaypee Infratech's lenders discuss evaluation criteria for potential bidders, CoC to take final call next month

Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain had in October initiated a fresh initiative to revive Jaypee Infratech on NCLT's direction after lenders rejected over Rs 7,000 crore bid of Suraksha group.

Press Trust of India November 27, 2018 20:08:03 IST
Jaypee Infratech's lenders discuss evaluation criteria for potential bidders, CoC to take final call next month

New Delhi: Lenders of debt-ridden Jaypee Infratech Tuesday held a meeting to discuss the expression of interest shown by five companies to takeover the realty firm and finalise the criteria for selecting potential bidders, sources said.

The Committee of Creditors (CoC) would take a final call on the "evaluation metrics" for deciding potential bidders in its next meeting, which is likely to be held early next month, they said adding that the bidding process and schedule would also be decided in the next meet.

Five companies -- NBCC, Kotak Investment, L&T Infrastructure, Singapore-based Cube Highways and Suraksha group -- have shown interest in taking over Jaypee Infratech, which is facing bankruptcy proceedings in the National Company Law Tribunal (NCLT).

L&T Infrastructure might not be invited for bidding as the company is only interested in taking over Yamuna Expressway project, sources said.

Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain had in October initiated a fresh initiative to revive Jaypee Infratech on NCLT's direction after lenders rejected over Rs 7,000 crore bid of Suraksha group.

Jaypee Infratechs lenders discuss evaluation criteria for potential bidders CoC to take final call next month

Representational image. Reuters.

Jain had invited expression of interest (EoI) from companies to submit resolution plan to revive Jaypee Infratech Ltd (JIL), which has many stuck housing projects in Noida and Greater Noida.

The IRP has received five EoIs from interested parties. Out of the five companies, L&T Infrastructure Development Projects is only interested in 165-km Yamuna Expressway and not for the development of land parcels attached to the expressway belonging to JIL.

Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for JIL under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to mange the company's business, who later invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshdeep had emerged as a front runner to acquire JIL. However, in May this year, lenders of JIL rejected the Rs 7,350 crore bid by Lakshdeep as they found it inadequate.

JIL has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. 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.

JIL, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units. Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers.

However, this amount has now been transferred to NCLT as per the order of the apex court that has now directed to start a fresh bidding process.

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