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Jaypee Infra insolvency: NBCC, Suraksha sweeten bids; offer more lands to lenders

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New Delhi, Apr 30 (PTI) State-owned NBCC and Suraksha group, which are in the race to acquire Jaypee Infratech through the insolvency process, have improved their bids to offer more land parcels to institutional financial creditors.

According to sources, NBCC raised its offer up to 1,903 acre, while Surakasha group has proposed over 2,600 acre to lenders.

In their resolution plan submitted by the two parties earlier this month, NBCC had offered 1,526 acre and Suraksha around 2,040 acre.

NBCC and Mumbai-based Suraksha group submitted their fresh bids, as per the direction of the Supreme Court.

As per the sources, a meeting of the Committee of Creditors (CoC) was held on Thursday to discuss the bids of both parties.

Suraksha group has earmarked 1,486 acre to dissenting lenders out of the total land parcels offered in the proposal, the sources said, adding that the company has given undertaking to provide more land in case of shortfall.

NBCC has provided an additional 377-acre land in case dissenting financial creditors are not satisfied with its original offer of 1,526 acre, taking its total offer to up to 1,903 acre.

On Yamuna Expressway, NBCC has proposed to offer 82 per cent equity in the road asset to lenders and it will retain an 18 per cent share.

In the 2019 bid, it had proposed a 100 per cent transfer of highway.

In earlier meetings of the CoC, the lenders had asked both the interested parties to improvise their bids and provide more land parcels under the land-debt swap deal.

This is the fourth round of the bidding process in the matter of Jaypee Infratech, which went into an insolvency process in August 2017.

Last month, the Supreme Court remitted to the CoC the issue of approval of resolution plan for Jaypee Infratech Ltd (JIL), saying no new expression of interest would be entertained for taking over the firm and only NBCC and Suraksha Realty could file revised proposals.

The apex court also directed to extend the resolution process by 45 days.

In March last year, NBCC got approval from the National Company Law Tribunal (NCLT) to acquire Jaypee Infratech.

Homebuyers' claim amounting to Rs 13,364 crore and lenders' claims worth Rs 9,783 crore were admitted last year.

The order was, however, challenged in the appellate tribunal NCLAT and later in the Supreme Court.

Jaypee Infratech went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.

Anuj Jain was appointed as an Interim Resolution Professional (IRP) to conduct the insolvency process and also manage the affairs of the company.

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 rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.

The matter then reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, 2019, the Supreme Court directed the completion of Jaypee Infratech’s insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty.

In December 2019, the CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 per cent vote in favour in the third round of the bidding process. PTI MJH BAL BAL