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  1. Bids for Jaypee Infra resolution likely to be finalised by April end

Bids for Jaypee Infra resolution likely to be finalised by April end

The bids for the resolution process for Jaypee Infratech is likely to be finalised by the end of April, sources with knowledge of the developments said on Wednesday.

By: and | New Delhi/mumbai | Published: April 12, 2018 5:25 AM
 Jaypee Infra, real estate sector Though Adani Realty and the Kotak-Cube consortium did not revise the bids, Suraksha Asset Reconstruction has submitted a better offer, people aware of the matter said.

The bids for the resolution process for Jaypee Infratech is likely to be finalised by the end of April, sources with knowledge of the developments said on Wednesday.

“The resolution professional has to present the final plan to the NCLT on May 7, so before that the process will be completed,” a source said.

On October 27, the IRP had invited companies, including real estate firms, with a net worth of over `1,000 crore to complete the delayed projects of Jaypee Infratech, including Noida’s Wish Town project, by infusing over `2,000 crore. Steel, energy and cement conglomerate JSW Group, metals and commodities giant Vedanta, the Mumbai-based Lodha Group and Deutsche Bank were among the 18 companies that had shown interest in buying Jaypee Infratech.

However, a consortium of Kotak Realty Fund and Cube Highways, Adani Group and Suraksha Asset Reconstruction Company (Sudhir V Valia, executive director of Sun Pharmaceutical Industries, is its sponsor director), were shortlisted for bidding for the beleaguered company. However, the differences in the way the top contenders had bid for the assets had made a straight comparison of one with another complex, making it tough for the lenders to reach a definite conclusion over which bid to accept.

Now, sources say that the three frontrunners were asked to come with revised offers, which would be overseen by an expert panel in the days to come. While inviting the revised bids, these shortlisted entities were also informed that their respective bids would still remain valid, another person familiar with the developments said.

Though Adani Realty and the Kotak-Cube consortium did not revise the bids, Suraksha Asset Reconstruction has submitted a better offer, people aware of the matter said. According to reports, the company has submitted a bid of around `7,000 crore. The company’s revised offer involves setting aside `3,000-3,500 crore towards construction of flats and making an upfront payment of around `2,000 crore to lenders. Also, Suraksha is said to be offering to swap land for loans of around `5,000 crore. FE could not confirm these details independently.

FE had reported on March 20 that the offer by the consortium of Kotak Realty Fund and Cube Highways provides for setting aside nearly `3,300 crore for completing the construction of 29,600 houses and taking over about 1,000 acres along with the Yamuna Expressway. The consortium has offered `40 crore and the remaining 5,000-odd acres to the lenders towards their debt liability, free to be disposed as lenders deem fit.

The initial estimates prepared by the lenders pegged the value of the land at over `2.7 crore per acre. At this rate, its value works out to `13,500 crore.

The Adani Group is understood to have set aside `1,500 crore for the completion of construction of houses and is said to have made an offer to pay `1,500 crore to the lenders towards their liability from JIL. It intends to take over the road and 5,000 acres, leaving 1,100 acres to be left to the lenders to dispose of, as they want.
On August 9, 2017, the Allahabad bench of National Company Law Tribunal had admitted the insolvency plea of IDBI Bank against JIL and appointed Anuj Jain as the IRP, suspending the board of directors of JIL.

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