As its bid to acquire debt-ridden Jaypee Infratech got rejected by the lenders’ panel, state-owned NBCC has written to the interim resolution professional (IRP) that the company is interested in taking over Jaypee group’s realty firm and its offer should be considered on merit.
In a letter to IRP Anuj Jain, NBCC said it would soon get the approvals of various government departments on its revised offer submitted on April 24. The public sector unit emphasised that its resolution plan to revive Jaypee Infratech (JIL) safeguards the interests of bankers as well as home-buyers.
A committee of creditors (CoC), in its meeting on April 26, decided not to consider NBCC’s bid as it was subject to the approval of various government departments.
NBCC, had during the lenders meet, sought some time to take all the necessary approvals. But, the lenders decided to put on vote on April 30, the offer of Suraksha Realty-led consortium and not that of NBCC.
According to sources, the Ministry of Housing and Urban Affairs has also approached the Department of Investment and Public Asset Management and the Department of Expenditure for seeking approval on revised bid.
In a letter to the IRP, NBCC said it is very much interested in acquiring bankruptcy-bound Jaypee Infratech.
NBCC had informed to the lenders panel that the company was in process of seeking government approvals and it should be given some time before the voting could be carried out on its plan, the letter said.
“NBCC continues to be very interested in the resolution process and accord the interest of the home-buyers, utmost priority,” the letter said adding that the company entered into insolvency proceedings of Jaypee Infratech to provide relief to over 20,000 home-buyers.
To protect financial creditors that has an exposure of nearly Rs 9,800 crore in the Jaypee Infratech, NBCC said it has offered Rs 5,000 crore worth of land as well as 100 per cent equity in Yamuna Expressway.
The Expressway, which connects Noida to Agra in Uttar Pradesh, is the only cash generating asset (Rs 350 crore annually as toll income) lying with the Jaypee Infratech. “We are confident that our proposal will safeguard the interest of the home-buyers and the lenders. Therefore, we request the CoC to consider our proposal on merit,” NBCC concluded in the letter.
Meanwhile, business conglomerate Adani Group had also recently expressed interest to bid for Jaypee Infratech. However, lenders are unlikely to seek Adani’s offer until this round of insolvency proceedings gets completed.
Crisis-hit Jaypee Group’s promoters too have made a fresh attempt to retain control over its realty arm Jaypee Infratech by seeking the support of home-buyers for its debt resolution plan submitted under the Insolvency and Bankruptcy Code (IBC).
Jaypee Group Chairman Manoj Gaur has promised to infuse Rs 2,000 crore to complete apartments over the next four years. The group had submitted a Rs 10,000-crore plan before lenders in April 2018, as well, but the same was not accepted by the lenders.
In 2017, the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech. In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company’s net worth and assets.
In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT’s direction.
Jaypee Group’s flagship firm Jaiprakash Associates Ltd (JAL) had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with the NCLT. Jaypee Infratech is a subsidiary of JAL.