Jaypee Infratech lenders to meet to discuss bids

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NEW DELHI: Debt-ridden Jaypee Infratech’s lenders will meet on February 18 to discuss the resolution plans to be submitted by four shortlisted bidders by Friday to take over the realty firm and complete stalled projects.

A meeting of Committee of Creditors (CoC) will be held on February 18, Interim Resolution Professional (IRP) Anuj Jain informed the stock exchanges on Wednesday.

The regulatory filing did not mention the agenda of the CoC meet.

However, sources said members of the CoC, comprising financial creditors and representatives of home buyers, will discuss all the proposals that would be submitted by Friday (February 15).

Jain had earlier said state-owned NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha group have been shortlisted as bidders and asked them to submit their resolution plans by February 15.

In October 2018, Jain started a fresh initiative to revive Jaypee Infratech on NCLT’s direction after lenders rejected the over Rs 7,000 crore bid of Suraksha group.

He had invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.

In 2017, the National Company Law Tribunal (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 the 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.

Source: Press Trust of India