State-owned NBCC on Friday said it has submitted a bid to acquire debt-ridden Jaypee Infratech. Lenders to Jaypee Infratech (JIL) had extended the deadline till February 15 for the shortlisted bidders — NBCC, Kotak Investment Advisors, Sudhir Valia-promoted Suraksha ARC and Cube Highways & Infrastructure — to submit their bids.“It is hereby informed that as a part of resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016, resolution plan in respect of JIL has been submitted by the NBCC (India) to the interim resolution professional on February 15, 2019,” NBCC said in a regulatory filing.
The committee of creditors (CoC) is now expected to meet on Monday (February 18) to take up the bids. Lenders to JIL have already approved the proposed evaluation matrix of the bids and the process for request for resolution plan through electronic voting. The National Company Law Tribunal (NCLT) had on August 9, 2017, admitted IDBI Bank’s plea for initiation of the corporate insolvency resolution process (CIRP) against JIL for defaulting on a Rs 526-crore loan. However, a resolution eluded the firm within the stipulated timeframe as lenders were not happy with “too low” bids.
On a writ petition filed by homebuyers, the Supreme Court on August 9, 2018, directed JIL’s resolution professional Anuj Jain “to follow provisions of the insolvency code afresh in all aspects”.
Noting that liquidation of Jaypee would serve no purpose for homebuyers, financial institutions or the promoters, the apex court, exercising power under Article 142 of the Constitution, extended the insolvency process of Jaypee for another 180 days.
Earlier, Lakshdeep, Adani Group and a joint venture between Kotak Investment Advisors and Cube Highways had submitted the resolution plans. Consequently, the Sudhir Valia-promoted Suraksha ARC had emerged as the front-runner to acquire JIL. However, in May 2018, lenders to JIL had rejected the Rs 7,350-crore bid by Suraksha as they found it “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. JIL has Rs 9,000-crore outstanding to various banks. JIL’s assets include 25,000 apartments that are under construction and 3,000 acre of land parcels, mostly along the expressway. FE