Jaypee Infratech case: Lenders may reject Lakshadweep offer

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New Delhi | Published: May 9, 2018 4:10:25 AM

On Monday, the Committee of Creditors and the lenders rejected the offer from Jaiprakash Associates that promised no haircut for banks and completion of housing projects in three years.

jaypee, jaypee infratechLenders feel the bid is too low and even asked Lakshadweep group to increase the bid value further in the meeting on Monday. (Reuters)

As the voting by the committee of creditors for selecting the bidder for Jaypee Infratech will be done on Wednesday, sources indicate that the lenders may reject Lakshadweep’s offer.“There is a lot of confusion, most of the lenders are not too sure of their (Lakshadweep’s) offer,” a source said.

As reported by FE earlier, Lakshadweep, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality, has offered to bring in `3,510 crore upfront for the 25,000 apartment residential project of the Jaypee Group along the Noida Expressway. In addition, `4,000 crore due to the banks shall be collected from the sale of land parcels of the Jaypee Group.

Lenders feel the bid is too low and even asked Lakshadweep group to increase the bid value further in the meeting on Monday. However, they were not keen to increase the bid offer, another source said, adding that the offer is almost half of the liquidation value of the company that is around Rs 14,000 crore, as per independent valuers.

On Monday, the Committee of Creditors and the lenders rejected the offer from Jaiprakash Associates that promised no haircut for banks and completion of housing projects in three years. The CoC has decided to allow voting on the Valia Group’s bid from Tuesday afternoon, with lenders allowed to submit their preference until Wednesday.

JAL has offered a net asset value of over Rs 10,000 crore including an upfront payment of `1,255 crore, loan swap of Rs 4,750 crore involving 1,437 acre, optionally convertible debentures of `2,125 crore at a yield of 9% as well as preference shares of `1,200 crore with a yield of 0.1%. It also offered to clear dues of `130 crore to fixed deposit holders. JAL was allowed to make a presentation as per the direction of the Supreme Court but as per IBC rules a promoter cannot bid for its subsidiary.

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