Jaypee Infratech insolvency: NBCC, Suraksha submit revised bids

By: |
May 12, 2021 6:15 AM

Before submitting the revised plans, both Suraksha and NBCC held meetings with the homebuyers on May 2 and May 7, respectively, people in the know told FE.

This includes guarantee security interest and promoter security interest, sources said.This includes guarantee security interest and promoter security interest, sources said.

State-run NBCC and the SPV led by Suraksha Realty on Monday submitted revised bids to acquire the bankrupt Jaypee Infratech (JIL). The revised resolution plans will now be shared with the evaluation adviser, RBSA.

Before submitting the revised plans, both Suraksha and NBCC held meetings with the homebuyers on May 2 and May 7, respectively, people in the know told FE.

The insolvency proceedings are likely to be delayed by about a month as the second wave of Covid infections has impacted movement of people and goods. In its March 2021 order, the Supreme Court had directed JIL’s interim resolution professional (IRP) to invite modified resolution plans from Suraksha and NBCC as well as complete the proceedings in 45 days, which ended on May 8. It is believed JIL’s IRP has sought an extension for the same from the SC.

“In their discussions with homebuyers, NBCC appeared confident that banks will vote in their favour. The company assured it will hand over 70% flats within 30 months. It will also keep a separate amount for refund seekers. If it is not able to refund the amount as on due date, NBCC will pay a 12% interest,” a person said, adding that the PSU will also open project-wise escrow accounts and there will be a monitoring company to evaluate the progress.

Suraksha, in its bid, has said it will arrange for Rs 3,000 crore by way of a working capital facility limit to complete the pending projects. It will also make an upfront payment of Rs 30 crore, if its bid is selected, another source said.

“Besides, Suraksha will also have a debt land swap of Rs 5,000 crore for the institutional investors. In its completion schedule, Suraksha has proposed to complete majority of the pending projects by December 2022,” the person added.

Both NBCC and Suraksha in their revised bids have said they will open customer grievance and redressal centre to handle the issues faced by homebuyers.

Around 20,000 housing units have been pending completion under JIL.

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