An assessment of the two revised bids for acquiring Jaypee Infratech’s (JIL) assets conducted by RBSA Advisors has revealed that the new resolution plan of the SPV of Suraksha Realty and Lakshadweep Investments & Finance scored better than NBCC’s on various parameters including flat delivery and compensation to secured financial creditors.

The bid evaluation advisory by the corporate valuation firm was done at the behest of JIL’s interim resolution professional (IRP), Anuj Jain and the committee of creditors (CoC). It assumes importance as the CoC is scheduled to meet on Thursday (November 28) to evaluate NBCC and Suraksha’s revised resolution plans.

RBSA analysed the bids based on an evaluation matrix provided by the CoC as contained in the ‘process document’.

As per the evaluation exercise, Suraksha-Lakshadweep’s revised bid secured a score of 25.29 out of a total of 100, whereas NBCC’s bid got only 20. The tally is based on what the companies are bringing to the table in terms of upfront cash payment, debt resolution, timeline of delivery of flats, liquidation of assets, etc.

“Suraksha-Lakshadweep’s revised bid was considered better as it has proposed to infuse more funds upfront and is offering a better debt-land swap deal. Also, the company has proposed to deliver the housing units in 3 years, against NBCC’s 4 years,” said a person in know of the developments.

In its revised offer, Suraksha proposed an upfront equity infusion of Rs 125 crore, which will be utilised for corporate insolvency resolution process (CIRP) costs, to pay fixed deposit (FD) holders and for working capital requirements.

The company has assured to complete the delivery of flats within 3 years and for completing the projects it will infuse Rs 2,000 crore in addition to the Rs 750 crore to be received from the Supreme Court that was deposited by Jaiprakash Associates (JAL). The SPV said it will also transfer additional Rs 100 crore to RWAs/ housing societies in Wishtown project for welfare of members or will provide a land bank worth Rs 100 crore.
It has not offered any payment for delay penalty and interest for previous period. The SPV is offering a debt-land swap deal of 1,934 acres across Jaganpur, Tappal and Agra worth around Rs 4,749 crore (net present value of `4,071 crore assuming monetisation in 2 years) in favour of financial creditors.

On the other hand, NBCC too has not offered any compensation for delay penalty and interest for previous delay. It has proposed to complete the pending housing units in 4 years.
The state-run infrastructure developer has offered an upfront infusion of Rs 120 crore to acquire 100% ownership rights of JIL, which will be used for payment of admitted operational debt and admitted financial debt for refund seekers and for FD holders.

The company wants to securitise future toll receipts of the Expressway SPV to raise a fresh debt from Expressway lenders to redeem debentures of Rs 2,000 crore. It is offering a debt-land swap deal of 1,426 acres across Tappal and Agra worth around Rs 2,672 crore (NPV Rs 2,291 crore assuming monetisation in 2 years) in favour of lenders.

Besides, NBCC has offered half of the profits that will be generated from sale of unclaimed flats, which will be shared on an annual basis after finalisation of Books of Accounts, to the secured financial creditors. Around 2,611 units have not submitted their claims so far, which means they have no claimants so far.

On NBCC’s debt-land swap deal, RBSA said the monetisation plan is “very sketchy” and no projections and timelines for realisation from land have been furnished, a source said.
The valuation advisor also pointed out that NBCC’s projections are “sketchy without assumptions”. The details of the cost to be incurred for completing real estate projects have not been furnished, he added.