Jaypee Infratech lenders want NBCC to sweeten bid

By: |
New Delhi | Published: May 30, 2019 6:03:02 AM

Lenders to Jaypee Infratech (JIL) have laid out five conditions, including reinstating an additional 500-acre land under the debt-asset swap plan, to state-run NBCC to “consider favourably” its revised bid.

jaypee, jaypee infratech, nbccJIL’s committee of creditors (CoC) had earlier rejected a bid by Mumbai-based Suraksha Realty through a voting process

Lenders to Jaypee Infratech (JIL) have laid out five conditions, including reinstating an additional 500-acre land under the debt-asset swap plan, to state-run NBCC to “consider favourably” its revised bid.

In a letter to NBCC on May 28, just two days ahead of a crucial meeting of the lenders to evaluate the NBCC’s bid, the lenders also demanded that the land parcel be made available to secured financial creditors on a pro-rata basis.

Besides, the lenders want NBCC to undertake to get the requisite approval from Yamuna Express Industrial Development Authority (YEIDA) if the “deemed approval” from YEIDA as proposed in the bid for transfer of Yamuna Expressway and land to special purpose vehicles (SPVs) are not approved by the adjudicating authority.

It is unclear whether the state-run firm would undertake to meet the conditions. A senior official with the state-run firm declined to comment.

NBCC’s latest bid for the insolvent firm includes infusion of `200-crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors, including banks and homebuyers.

JIL’s committee of creditors (CoC) had earlier rejected a bid by Mumbai-based Suraksha Realty through a voting process. Later, the panel decided to put on vote NBCC’s offer even as bankers were opposed to this move citing certain conditions in the resolution plan submitted by the public sector firm.

“The resolution plan should reinstate 1,426 acres of land that was earlier offered to the secured financial creditors under the debt-asset swap that was proposed under the resolution plan submitted by NBCC on February 15, 2019, instead of the 950 acres of land that is currently being offered under the resolution plan,” law firm Cyril Amarchand Mangaldas has written to NBCC on behalf of lenders’ consortium comprising 13 banks.

Lenders have also asked NBCC to bear any income tax, GST liability or corporate tax liabilities which may arise in future on account of transfer of land parcels. These would not be borne by the secured financial creditors. It also asked NBCC to get necessary nod from the income tax authorities for implementation of the bid if the relief sought by the public sector firm for any future tax liability is not approved by the adjudicating authority.

The lenders said they would consider providing financial assistance to NBCC in respect of unsold flats, provided such assistance is guaranteed by the Centre.

Also read: Vodafone Idea, Airtel may be asked to explain subscriber data variation

On the bankers’ plea, the NCLAT had on May 17 annulled voting by homebuyers and lenders on NBCC’s bid and allowed renegotiation on the offer by May 30. The voting process could start from May 31.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Natural Rubber output rises 9.4% to 7.12 lakh tonne in last fiscal
2Sugar mills’ working capital requirements to go up: Icra
3Raw jute prices come down to below MSP due to low capacity utilisation of mills