MC: Adani Group submits non-binding bid for Jaypee Infratech; offers Rs 500cr upfront cash infusion

28 May 2019: Adani Group has submitted a non-binding bid including an upfront cash payment of Rs 500 crore and other fund infusions of Rs 1,700 crore for Jaypee Infratech, sources told Moneycontrol.

This is much higher than the offer made by NBCC and also comes free of any conditions. In its latest offer, NBCC proposed an infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats construction by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.

However, Moneycontrol is yet to verify the details of the offer from the Adani Group as well as the resolution professional (IRP).

The Adani Group has offered a total fund infusion of Rs 1,700 crore to complete the project for homebuyers.

The Rs 500 crore upfront payment includes the total cost of Corporate Insolvency Resolution Process (CIRP), Rs 23 crore in payment to unsecured financial creditors and payment to workmen.

For the unsecured financial creditors, the Group has offered a transfer of land parcel totalling 1,000 acres.

As for penalty/interest for possession delay, 25 percent of such amount will be paid to homebuyers, as accrued on August 9, 2017 on account of delay in delivery of possession. Further, if the Supreme Court or NCLT permits, the amount of Rs 750 crores deposited by Jaiprakash Associates for protection of homebuyers will also be utilised for the payment of balance penalties/interest.

It now remains to be seen if the committee of creditors (CoC) will consider the bid as the Adani Group did not participate in the bidding process within the stipulated time.

The 12th committee of creditors (CoC) meeting of Jaypee Infratech is scheduled for May 30, after which the resolution plan is likely to be put to vote on May 31.

As reported on Moneycontrol.com



Categories: General News, India Bankruptcy

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