Adani keen on acquiring Jaypee Infratech assets, approaches RP, CoC

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Updated: April 19, 2019 7:02:44 AM

In a letter to JIL's resolution professional (RP) Anuj Jain, Adani Infrastructure and Developers (AIDPL) said it is “interested” in participating in the new corporate insolvency resolution process (CIRP) and in implementing a turnaround plan.

Adani once more evinces interest in acquiring Jaypee Infratech assets, approaches RP, CoCAdani once more evinces interest in acquiring Jaypee Infratech assets, approaches RP, CoC

After failing to acquire debt-laden Jaypee Infratech earlier, Adani group has again evinced interest in taking over the cash-strapped real estate developer and has urged the committee of creditors (CoC) to allow it to submit a resolution plan by April 27.

In a letter to JIL’s resolution professional (RP) Anuj Jain, Adani Infrastructure and Developers (AIDPL) said it is “interested” in participating in the new corporate insolvency resolution process (CIRP) and in implementing a turnaround plan.

In the letter, which was seen by FE, AIDPL requested Jain and the CoC to provide it with the request for resolution plan, evaluation matrix, information memorandum and access to virtual data room.

AIDPL is a wholly owned subsidiary of Adani Properties, which is held by the Adani family. It is engaged in real estate and is the holding firm for various real estate special purpose vehicles of the Adani group. When contacted, a Adani group spokesperson did not offer any response.

The group assured Jain that it is committed to submitting a comprehensive resolution plan that will “address interest of all stakeholders and strengthen as well as sustain the long-term future of JIL.”

Emphasising that the CoC should also permit it to submit a resolution plan, Adani explained that under regulation 36B of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process Regulation for Corporate Persons) Regulations, 2016, the RP with approval of CoC can extend the timeline of submissions.

Quoting from a 2018 judgment by the National Company Law Appellate Tribunal (NCLAT) in a case involving Bank of Baroda and Binani Industries, Adani pointed out that the tribunal said that purpose of resolution is maximisation of value of assets of the corporate debtor, and hence allowing it (Adani) would help maximise value of Jaypee’s assets.

Confirming that it meets the eligibility requirements for the current CIRP, AIDPL said it is familiar with JIL and its business as well as concerns raised by creditors and other stakeholders.

Sources said JIL’s CoC, which met on Tuesday, took up AIDPL’s request. The CoC noted that Adani’s letter was a “mere expression of interest”. It added that since there was “no concrete offer” by the firm, “no further action” was required at this stage.

The next meeting of CoC is expected on April 26, where the panel will discuss the revised plans submitted by Suraksha. State-run NBCC is also expected to submit its revised plan by April 25. The panel is likely to again meet on April 30 where it is expected to take up Adani’s new plan.

During JIL’s previous CIRP, initiated in August 2017, besides Adani, Lakshdeep Builders and a joint venture between Kotak Investment Advisors and Cube Highways had submitted resolutions plans. However, Sudhir Valia-promoted Suraksha ARC emerged as the frontrunner. But, in May 2018, JIL lenders rejected Suraksha’s `7,350-crore bid as they found it “too low”.

Later, on a writ petition filed by homebuyers, the Supreme Court on August 9, 2018 directed Jain “to follow provisions of the insolvency code afresh in all aspects”.

As per a note prepared by IDBI Bank, Jaypee’s largest lender, the company’s actual value stands at `17,111 crore, while its distress value is pegged at `14,548 crore. JIL has `9,000-crore outstanding to various banks. JIL’s assets include 25,000 apartments and 3,000 acre of land, mostly along the Yamuna Expressway.

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