Jaiprakash Associates urges committee to consider its offer for Jaypee

27 May 2021 CW Team

The competition between state-run NBCC and Suraksha group to take control of Jaypee Infratech (JIL) led to its bankruptcy in August 2017.

According to the letter sent by Manoj Gaur, the Chairman of Jaiprakash Associates Ltd (JAL) to Anuj Jain, the Interim Resolution Professional (IRP) of JIL, Gaur has asked him to consider the settlement offer submitted before the Supreme Court in 2019.

Gaur also stated that since JIL has more assets than liabilities the lenders would not consider investing in loan guarantors if the firm is given off at cheaper rates.

A meeting between the Committee of Creditors (CoC) and homebuyers will be held to debate on the need for extending time given to NBCC and Suraksha group to submit their finalised bids for JIL.

Gaur revealed that liquidation of the total debt that accounts for Rs 9,783 crore to be given to the financial creditors will be done by advance payment, land swap and long term debentures of about Rs 12,500 crore.

As for home buyers, JAL would provide funds of Rs 1,650 crore for home construction out of which Rs 400 crore would be an advance payment.

In line with the plan submitted to the Supreme Court in 2019, JAL has decided to make full compensation of fixed deposits and outstanding dues of Yamuna Expressway Industrial Development Authority(YEIDA).

Gaur cites the offers made by the conglomerate to settle dues of lenders without any haircuts and promised to complete construction of around 20,000 flats left pending.

Presently, JIL undergoes Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code.

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Also read: Jaypee Infratech acquisition: NBCC, Suraksha to submit revised bids

Also read: Jaypee Infratech acquisition: Suraksha objects to bid submission extension

Noida-based Jaiprakash Associates, the promoter of bankrupt Jaypee Infratech, has said its settlement proposal should be by the creditors’ panel without any haircuts. The Committee of Creditors (CoC) will soon take a call on the two existing resolution plans for Jaypee Infratech. The competition between state-run NBCC and Suraksha group to take control of Jaypee Infratech (JIL) led to its bankruptcy in August 2017. According to the letter sent by Manoj Gaur, the Chairman of Jaiprakash Associates Ltd (JAL) to Anuj Jain, the Interim Resolution Professional (IRP) of JIL, Gaur has asked him to consider the settlement offer submitted before the Supreme Court in 2019. Gaur also stated that since JIL has more assets than liabilities the lenders would not consider investing in loan guarantors if the firm is given off at cheaper rates. A meeting between the Committee of Creditors (CoC) and homebuyers will be held to debate on the need for extending time given to NBCC and Suraksha group to submit their finalised bids for JIL. Gaur revealed that liquidation of the total debt that accounts for Rs 9,783 crore to be given to the financial creditors will be done by advance payment, land swap and long term debentures of about Rs 12,500 crore. As for home buyers, JAL would provide funds of Rs 1,650 crore for home construction out of which Rs 400 crore would be an advance payment. In line with the plan submitted to the Supreme Court in 2019, JAL has decided to make full compensation of fixed deposits and outstanding dues of Yamuna Expressway Industrial Development Authority(YEIDA). Gaur cites the offers made by the conglomerate to settle dues of lenders without any haircuts and promised to complete construction of around 20,000 flats left pending. Presently, JIL undergoes Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code. Image Source Also read: Jaypee Infratech acquisition: NBCC, Suraksha to submit revised bids Also read: Jaypee Infratech acquisition: Suraksha objects to bid submission extension