State-owned NBCC and Suraksha group, which are in the fray to acquire Jaypee Infratech Ltd (JIL) through an insolvency resolution process, have submitted their revised bids and have also clarified issues raised by financial creditors. The companies have also improved their offers, which were submitted to the Committee of Creditors (CoC) on Tuesday.
Construction firm NBCC submitted its bid just before midnight while Mumbai-based realty firm Suraksha submitted its resolution plan on Tuesday afternoon, sources said. The deadline to submit the bids was Tuesday.
A meeting of the CoC will be held on May 20 to discuss inter-alia the final resolution plan(s), JIL said in a regulatory filing on Wednesday. The bids have been submitted by the parties under the Corporate Insolvency Resolution Process (CIRP).
The sources said NBCC has offered an additional 200 acres, especially for assenting creditors, apart from Yamuna Expressway road project that connects Noida and Agra in Uttar Pradesh. NBCC has already offered 1,903 acres to lenders, both assenting and dissenting, and the 200 acres will be additional, they added.
In this fourth round of bidding process, Surakasha group has proposed to give 2,651 acres to lenders. Suraksha group has earmarked 1,486 acres to dissenting lenders out of the total land parcels offered in the proposal.
In the last meeting of the CoC held on Saturday, financial creditors, which includes representatives of lenders and homebuyers, discussed the two companies' earlier bids and sought various clarifications. While Suraksha group will keep Yamuna Expressway with itself, NBCC will transfer over 80 per cent of stake in the road projects to banks and financial institutions.
Suraksha group has offered to complete pending works of around 20,000 housing units in 42 months. It has proposed a line of credit of Rs 3,000 crore as working capital for construction of projects. Suraksha group has given an undertaking that any shortfall to the dissenting creditors will be met by the company by way of more funds or assets.
It is estimated that around Rs 6,000 crore will be required to complete all stalled projects. The receivables from customers against sales are estimated at around Rs 3,500 crore, sources had said. This is the fourth round of the bidding process in the matter of JIL bankruptcy case.
In March this year, the Supreme Court ordered that bids can be sought only from NBCC and Suraksha group. The apex court had also directed completion of the resolution process in 45 days, which lapsed on May 8. An application has been filed to extend the timeline for finding the buyer for JIL.
JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
On November 6, 2019, the Supreme Court directed the completion of JIL's insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty. In December 2019, the CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 per cent vote in favour in the third round of the bidding process.
Then, in March 2020, NBCC had got an approval from the NCLT to acquire JIL. Homebuyers' claim amounting to Rs 13,364 crore and lenders' claims worth Rs 9,783 crore were admitted last year.
The order was, however, challenged before the NCLAT and later in the Supreme Court, which in March 2020 ordered for calling fresh bids from NBCC and Suraksha.