Lakshadweep, a joint venture between Sudhir Valia-led Suraksha ARC and Dosti Realty, will look at “improving” its bid for Jaiprakash Infrastructure (JIL) if an opportunity is afforded to it, sources close to the development told FE.
Lakshadweep, a joint venture between Sudhir Valia-led Suraksha ARC and Dosti Realty, will look at “improving” its bid for Jaiprakash Infrastructure (JIL) if an opportunity is afforded to it, sources close to the development told FE. The firm has already conveyed its intent to the resolution professional and the lenders to the troubled real estate company, the sources added.
Lakshadweep’s bid, which had emerged as the highest, was rejected by the committee of creditors (CoC) to JIL last week saying it was “too low”, triggering speculations that the firm was on its way to liquidation.
While the CoC might wait for the Supreme Court’s direction before entertaining a renewed bid by Lakshadweep or exercising any other option including recommending liquidation, the apex court is scheduled to hear the matter on May 16. Earlier, the SC had allowed JIL’s parent Jaiprakash Associates (JAL) to make an offer “as per the law” and, subsequently, it indeed made a last-ditch effort to retain the troubled builder. However, the CoC refused to consider the JAL offer, invoking Section 29 (A) of the Insolvency and Bankruptcy Code (IBC) that prohibits a defaulting promoter to bid.
Though it was not immediately known as to how much Lakshadweep would hike its earlier offer, a source said the new offer would be bound by two considerations: It must make “commercial sense” for the JV company and at the same time meet the “requirements” of the lenders.
Lakshadweep had earlier offered to bring in Rs 3,510 crore upfront for the 25,000-apartment residential project of the Jaypee Group along the Noida Expressway. It also proposed that an additional Rs 4,000 crore due to the banks shall be collected from the sale of land parcels of the Jaypee Group. JIL’s liquidation value was at around Rs 14,000 crore, according to lenders.
As reported by FE earlier, in a resolution plan submitted for JIL, parent JAL had promised zero haircut for banks and flats to harried home-buyers (there are some 32,000 of them).
The 270-day maximum corporate insolvency resolution period (CIRP) for JIL, which was admitted on IDBI Bank’s plea by the Allahabad bench of the National Company Law Tribunal (NCLT) on August 10 last year, ended on May 12. As per the IBC, if the RP or the CoC fails to bring any resolution plan, the company goes for liquidation. Home-buyers, however, are understood to be opposed to liquidation of JIL.
Meanwhile, JAL, which has been asked by the Supreme Court to deposit Rs 2,000 crore for safeguarding the interest of home-buyers, has so far deposited only Rs 750 crore with the court’s registry.