22 January 2019: Lenders and home buyers of Jaypee Infratech may extend by around 15 days the January 27 deadline to submit proposals to revive the debt-ridden firm as shortlisted bidders have sought more time, sources said.
State-owned NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha group have been shortlisted as bidders for Jaypee Infratech, which is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
The Committee of Creditors (CoC) is considering a proposal to extend the bidding deadline by around 15 days and a decision would be taken soon, sources said.
The CoC had last month approved the evaluation criteria to be adopted to select a bidder for taking over the realty firm.
Jaypee Infratech’s interim resolution professional (IRP) Anuj Jain had in October started a fresh initiative to revive Jaypee Infratech on NCLT’s direction after lenders rejected over Rs 7,000 crore bid of Suraksha group.
He had invited expressions of interest from companies to submit a resolution plan to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.
In 2017, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code (IBC).
The tribunal had appointed Jain as IRP to mange the company’s business and invite bids from investors.
Consequently, Lakshdeep, part of Suraksha group, had emerged as a front-runner to acquire the firm. However, in May last year, lenders rejected the Rs 7,350 crore bid by Lakshdeep as they found the amount to be inadequate.
The realty firm 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.
Jaypee Infratech, 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 an order of the apex court.
Categories: General News