Jaypee infratech insolvency: Adani Group bid turned down by CoC

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Published: May 21, 2019 12:03:22 AM

AIDPL is a wholly-owned subsidiary of Adani Properties, which, in turn, 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.

Adani Group, Jaypee Infratech, committee of creditors, Adani Infrastructure and Developers’, industry newsAIDPL is a wholly-owned subsidiary of Adani Properties, which, in turn, is held by the Adani family.

The committee of creditors (CoC) of Jaypee Infratech (JIL) is understood to have turned down a request by the Adani group that it be allowed to submit a bid for the revival of the bankrupt firm. Sources aware of the development told FE that the lenders turned down the request as it came late and by that time the CoC was busy examining the revised bid of the consortium led by Suraksha Realty and subsequently of NBCC. Sources said that JIL’s CoC turned down the request of Adani Infrastructure and Developers’ (AIDPL) bid at its meeting on May 14.

“AIDPL’s request was late and by the time it was made, the CoC was already busy with voting on a revised bid of the consortium led by Suraksha Realty. Post-Suraksha, the CoC got busy with issues related to considering the revised resolution plan of state-run NBCC, which is being discussed by the panel at present,” sources said .

AIDPL is a wholly-owned subsidiary of Adani Properties, which, in turn, 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, an Adani group spokesperson did not offer any response.

During JIL’s previous Corporate Insolvency Resolution Process (CIRP), initiated in August 2017, the Adani group had submitted a bid. Others like Lakshdeep Builders, Suraksha ARC, and a joint venture between Kotak Investment Advisors and Cube Highways had also submitted their resolutions plans. The bid of Suraksha ARC had emerged as a front-runner but it was rejected by the CoC as the Rs 7,350-crore offer was found to be “too low”.

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

According to a note prepared by IDBI Bank, Jaypee’s largest lender, the company’s actual value stands at Rs 17,111 crore, while its distress value is pegged at Rs 14,548 crore. JIL has Rs 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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