Lakshdeep Investments & Finance has written to the lenders to Jaypee Infratech (JIL) and the firm’s resolution professional, asking why its ‘highest bid’ for the embattled real estate developer has been rejected. It said the resolution plan submitted by it was after many rounds of discussions with the lenders and their advisors and claimed that their demands have been satisfied in the final plan.
“The non-approval of the resolution plan by the (Committee of Creditors), has come as a surprise to the resolution applicant as the final resolution plan, as we understand, was in line with the requirement of the lenders as well as the interest of home buyers,” Lakshdeep, a joint venture between Suraksha Asset Reconstruction and Dosti Realty, said in a letter to the RP and the lenders.
Lakshdeep bid a total of Rs 10,314 crore for Jaypee Infratech. Rejection of the bid has intensified the rumours that the real estate company may be on its way to liquidation. On May 16, the apex court stayed the liquidation proceedings against Jaypee Infratech while asking the promoters to deposit Rs 1,000 crore by June 15 to refund homebuyers. The next date for hearing in the matter is July 4.
Lenders of Jaypee Infratech had on May 9 rejected Lakshdeep’s offer to buy the bankrupt company as the bid was found “too low”. 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.
According to a source from Lakshdeep, the company was confident that their plan would be approved by the lenders. “On May 9 when voting happened, we were shocked and surprised by the decision of the CoC members when they rejected our plans.
They could have rejected one month earlier. We did not understand the reason, they did not communicate to us the reason of rejection,” the source said. Lakshdeep also wants to “understand the gaps and try and rework the resolution plan”, the source said.
Meanwhile, the lenders and the resolution professional is likely to send a reply to Lakshdeep after a CoC meeting. “A reply may be sent to the resolution applicant once the CoC meets. There has been no CoC meeting after May 7,” a source close to the development said.
Lakshdeep has also filed an intervening application in an ongoing case in the Supreme Court on May 11, seeking to extend the deadline for insolvency proceedings.