10 April 2019: State-run construction company NBCC has sought an extension of more than two weeks from the Committee of Creditors (CoC) overseeing Jaypee Infratech’s insolvency resolution process to submit a revised bid for the company, said two persons with direct knowledge of the development.
This may lead to further delay in the insolvency process of the troubled real estate developer even as the stipulated 270-day deadline for CoC to decide on a winning bid ends on May 6.
“The extension sought by the company is in the wake of its CMD Anoop Kumar Mittal’s term coming to an end last week,” said one of the sources. “This may result in some more delay in the entire process as NBCC was earlier seen leading the race.”
Anuj Jain, the interim resolution professional (IRP) who is carrying out Jaypee Infratech’s insolvency process, had earlier shortlisted four players—NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha Group—and asked them to submit their resolution plans by February 15.
In a meeting held on February 18, the lenders had discussed the bids received from NBCC and Suraksha Asset Reconstruction Company. Both the bidders had also made separate presentations to the lenders group. They had then decided to hold more meetings with both NBCC and Suraksha before taking a final call.
On April 5, 2019, NBCC informed the stock exchanges that Shiv Das Meena, additional secretary of housing and urban affairs ministry, has been given the additional charge of the corporation after Mittal left.
ET’s email query to NBCC remained unanswered until the time of going to press on Tuesday. IRP Anuj Jain declined to comment for the story.
As part of its resolution proposal for Jaypee Infratech, NBCC had offered to hive off the Yamuna Expressway between Delhi and Agra, and give it to the lenders. The value of the road project is estimated to be over Rs 6,000 crore given the toll collection.
NBCC had asked lenders to provide Rs 2,000 crore in lieu of this project. Half of this amount, it offered to be returned to lenders as part of repayment package and balance to be used for completion of residential projects that are stuck, which is estimated to cost Rs 1,500 crore. It planned to complete these projects in four years. NBCC has also offered to give 1,400 acres as debtasset swap to the lenders.
A subsidiary of Jaypee Group flagship firm Jaiprakash Associates, Jaypee Infratech is developing about 32,000 flats, of which it has delivered only 9,500 units.
In February, Jaiprakash Associates, promoter of Jaypee Infratech, had once again submitted a proposal to lenders of its subsidiary to settle dues. “The promoter JAL also submitted a settlement proposal under Section 12A of the IBC, 2016 for consideration of the CoC,” Jaypee Infratech had said in a regulatory filing then.