Jaypee Infra insolvency: Creditors to consider bids of Suraksha, NBCC on Thursday
According to sources, the CoC has decided to consider Suraksha's bid as well, even though it was submitted after the official deadline of June 4
New Delhi: Jaypee Infratech’s financial creditors on Monday decided to consider the bids of both state-owned NBCC and Suraksha group to acquire the embattled realty firm in its next meeting scheduled on June 10.
Just before the start of the meeting of the Committee of Creditors (CoC) on Monday, Suraksha group submitted its revised bid, offering more funds to banks while reducing the timeline to complete some stalled projects for benefit of homebuyers.
According to sources, the CoC has decided to consider Suraksha’s bid as well, even though it was submitted after the official deadline of June 4.
The Mumbai-based firm, which is pitted against NBCC to acquire Jaypee Infratech Ltd (JIL), did not submit its resolution plan on June 4 and rather sought at least seven days’ extension to sweeten its offer for both homebuyers and bankers.
NBCC, however, submitted its resolution plan on June 4. Sources said the CoC members discussed the bid of NBCC.
They also held discussions on whether to accept Suraksha’s bid as it was submitted after the deadline.
This was the first time that Suraksha group had sought extension and therefore many members said its offer should also be considered, sources added.
In a regulatory filing, JIL informed that the CoC will meet on June 10 (Thursday).
According to sources, Suraksha group had offered more than 2,600 acres land to institutional financial creditors in its last bid submitted on May 18.
Improving the offer, Suraksha has now promised to issue NCDs (non-convertible debentures) worth Rs 1,200 crore to banks, taking its total offer to nearly Rs 7,800 crore.
For homebuyers, the company has reduced the timeline of completion of some projects, wherever feasible.
Moreover, Suraksha group will immediately infuse Rs 300 crore if its bid is approved by the CoC to ensure construction works are not hampered till the resolution plan gets approved by the National Company Law Tribunal (NCLT).
This is the fourth round of the bidding process in the matter of JIL bankruptcy case.
JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
Interim Resolution Professional (IRP) Anuj Jain is managing JIL and running the bankruptcy proceedings.
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 reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids be invited only from NBCC and Suraksha.
Then in December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
In March 2020, NBCC had got approval from the NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later the Supreme Court, which on March 24 this year ordered that fresh bids should be invited only from NBCC and Suraksha.
The apex court had also directed that the resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL till July 7.