Maximising value of assets! JIL CoC to form core group to work with NBCC, Suraksha

By: and | Published: March 8, 2019 4:33 AM

A source said the CoC requested the resolution professional, Anuj Jain, to include expenses incurred by members in finalisation of resolution plan as part of the corporate insolvency resolution process costs, as the endeavour is to maximise the value of assets.

JIL has Rs 9,000-crore outstanding to various banks.

The Committee of Creditors (CoC) of Jaypee Infratech (JIL) will form a core group of its members, who will hold deliberations with resolution applicants — NBCC and Suraksha ARC — on various modalities of their plans and will work with both the companies to explore avenues to maximise the value of assets of the debt-laden real estate developer.

Sources in know of the development told FE that the CoC in its last meeting on March 1 decided to form a core working group, which will include authorised representative of homebuyers, IDBI Bank, LIC, SBI, IIFCL and authorised representative of FD holders.

“This group will have meetings with the resolution applicants and also assist the CoC for making modifications in the resolution plans with the intention to enhance the value of assets of JIL. A decision on the same is likely to be taken soon,” one of the sources said.

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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.

Another source said the CoC also requested the resolution professional, Anuj Jain, to include expenses incurred by members in finalisation of resolution plan as part of the corporate insolvency resolution process (CIRP) costs, as the endeavour is to maximise the value of assets.

Legal advisor to the RP said CIRP cost needs to be as per the Insolvency and Bankruptcy Code (IBC) regulations, and if it is to be part of CIRP cost and to be paid out of cash flows of JIL, then the CoC has to submit a formal request to the RP.

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In its resolution plan, state-run NBCC has proposed to pay the entire due to the financial creditors initially through an upfront payment of Rs 1,000 crore. On a later date, it would pay Rs 3,000 crore through a land swap deal and the remaining Rs 5,782 crore by giving lenders 100% stake in the Expressway SPV. It will also infuseRs 500 crore to complete pending housing projects.

While Sudhir Valia-promoted Suraksha ARC has offered to pay Rs 10 crore upfront to the financial creditors and Rs 5,000 crore through a swapping debt for land deal.

It has also proposed to complete housing projects and would infuse Rs 3,000 crore towards working capital requirements.

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