Lenders to Jaypee Infratech (JIL) will, on November 27, decide whether L&T Infrastructure Development Projects’ (IDPL) selective proposal for the bankrupt firm can be considered.
L&T IDPL is interested only in JIL’s flagship Yamuna Expressway and does not want to bid for land parcels attached to the expressway. The company is an arm of engineering and construction major Larsen & Toubro.
In all, five suitors have submitted bids for the bankrupt firm whose assets include 25,000 apartments that are under construction and 3,000 acres of land parcels, mostly along with the expressway.
State-run NBCC, Kotak Investment Advisors, Sudhir Valia-promoted Suraksha ARC and Cube Highways & Infrastructure have also evinced interest in the firm.
Sources said that while it might be “theoretically possible” for a suitor to submit a “conditional” bid, it would be up to the committee of creditors (CoC) to decide whether they would allow a piece-meal sale of assets. The CoC is expected to prepare the evaluation matrix based on which the bids will be assessed.
The National Company Law Tribunal (NCLT) had on August 9, 2017 admitted IDBI Bank’s plea to initiate insolvency proceedings against JIL for defaulting on a Rs 526-crore loan. However, resolution eluded the firm within the stipulated time-frame as lenders were not happy with the “too low” bids.
However, on a writ petition filed by the home buyers, the Supreme Court had on August 9, 2018 directed JIL’s resolution professional Anuj Jain “to follow the provisions of the insolvency code afresh in all aspects.”
Noting that the liquidation of Jaypee would serve no purpose for homebuyers, financial institutions or the promoters, exercising power under Article 142 of Constitution of India, the apex court extended the insolvency process of Jaypee for another 180 days.
Jain had invited EoIs on October 25 and November 9 was the last date for submission of the EoIs.
Earlier, Lakshdeep, Adani Group and a joint venture between Kotak Investment Advisors and Cube Highways had submitted the resolution plans. Consequently, Sudhir Valia-promoted Suraksha ARC had emerged as the frontrunner to acquire JIL. However, in May this year, lenders of JIL rejected the Rs 7,350-crore bid by Suraksha as they found it “too low”.
According to a note prepared by IDBI Bank, Jaypee’s largest lender, the company’s actual value stands at Rs 17,111 crore, while its distress value is pegged at Rs 14,548 crore. JIL has Rs 9,000 crore outstanding to various banks.
Source: Financial Express