Manoj Gaur submits over Rs 10,000 crore revival plan for Jaypee Infratech

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NEW DELHI: Jaypee group promoter Manoj Gaur made a Rs 10,000 crore offer to pay off bank loans and complete the stuck housing projects as part of plans to bring Jaypee Infratech out of bankruptcy, sources said.

The offer, which includes paying part of Rs 9,800 crore debt, giving lenders an equity stake in the company and completing unfinished housing projects, is over 25 per cent higher than the best bid made for Jaypee Infratech at the bankruptcy proceedings.

Sources said Gaur, who had previously sold interest in hydroelectric and cement projects to keep the real estate-to-hospital group alive, made a presentation before the committee of Japyee Infratech lenders here.

They said it is not clear whether the Committee of Creditors (CoC) has accepted the offer as also if the panel would weigh it against the rival offer made by Lakshadweep Pvt Ltd.

Lakshadweep, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, had made a Rs 7,350 crore bid few weeks back.

Sources said the CoC is likely to deliberate over the bid at its meeting over the next two days.

Gaur in his presentation offered a combination of cash, land parcels and equity to lenders through instruments, totalling more than Jaypee Infra’s outstanding debt of Rs 9,800 crore.

Crisis-hit Jaypee group firm Jaypee Infratech is facing insolvency proceedings after it defaulted on loan repayments. The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The NCLT had appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company’s business. The IRP had invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 apartments. For giving possession of another 4,500 flats, it has applied for occupancy certificates.

The realty and infrastructure firm plans to deliver the remaining 18,000 flats by 2021. It needs Rs 6,500 crore to construct these flats, while Rs 4,000 crore is receivables from customers, leaving a shortfall of Rs 2,500 crore.

Jaypee Infratech currently has about Rs 24,000 crore worth assets, including land parcels, Yamuna Expressway and a hospital, that can be monetised to protect the interest of creditors, about 30,000 home buyers and a large number of minority shareholders, sources had earlier said.

Jaypee group has already submitted Rs 650 crore in the registry of the Supreme Court and it has been asked to deposit Rs 100 crore more by May 10. The amount will be used to refund home buyers.

Source: Press Trust of India