Jaypee group chairman to meet homebuyers today to discuss resolution plan

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Published: April 19, 2019 1:00:43 AM

Sources said Gaur wrote two letters to homebuyers, first on April 13 and the second on April 17, where he assured them of his intentions of delivering their housing units in a time bound manner. The meeting is scheduled for Friday morning.

Jaypee group chairman to meet homebuyers today to discuss resolution planJaypee group chairman to meet homebuyers today to discuss resolution plan

Jaypee group chairman Manoj Gaur has invited homebuyers of its bankrupt company, Jaypee Infratech (JIL), for a meeting on Friday to discuss his resolution plan regarding the stalled construction projects.

Sources said Gaur wrote two letters to homebuyers, first on April 13 and the second on April 17, where he assured them of his intentions of delivering their housing units in a time bound manner. The meeting is scheduled for Friday morning.

In the letters, which were seen by FE, Gaur said, “Our interaction on April 19 is aimed to address how we can still resolve outstanding issues of completing homes in a time bound manner and meet commitment of redemption of FDs, as per the proposal JIL submitted under Section 12A of IBC to IDBI Bank, the lead bank of JIL, on 15/2/2019.”

The resolution plan details how the outstanding issues of creditors are proposed to be settled. Besides, it also speaks about induction of working capital and its end use in a transparent manner, he added. “I am conscious that while we have a plan, but when with positive mind, we shall interact, it is possible that constructive inputs will make the final plan evolve better,” Gaur said.

On February 15, Gaur in his resolution plan offered to clear dues of financial creditors totalling around `8,358 crore out of their admitted claim of `9,783 crore. This `8,358 crore, however, does not include the interest component of `1,425 crore, on which he has sought a waiver.

His proposal also promises to pay the fixed deposit holders within 90 days of the approval of his settlement. He also hopes to complete the pending housing projects in about 4 years. He has offered to pay `412 crore to operational creditors.

Gaur has proposed to make an upfront payment of `1,500 crore to financial creditors and another `2,000 crore on a later date, after raising the amount through convertible debentures. These apart, he intends to swap debt amounting to `4,858 crore with land.

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