JIL has made its offer in an affidavit to the SC, and the offer, it claims, is better than that of the other bidders.
JIL hopes that the apex court would accept its proposal, which would, in turn, help the company get Rs 14 billion from Deutsche Bank. The company has also submitted close to Rs 5.5 billion and would be submitting another Rs 2 billion in the next two months. “If the company gets interim funding and the court gives the money already submitted, that would be more than enough to complete the stalled projects,” added the source.
When contacted, a Jaypee spokesperson said that the company had requested the SC to consider its offer and claimed it was in the interests of homeowners, minority shareholders, and other stakeholders. “We think our offer is better than what is being reported about proposals being sent to the resolution professional,” the spokesperson said.
According to Jaypee Infratech (JIL), liquidation value of company is Rs 160 billion
However, bidders made an offer in the Rs 70 billion to Rs 80 billion range
JIL says its offer submitted to Supreme Court better than the other bidders
Says it has completed 13,500 homes; will construct rest by 2021
JIL is being restructured through insolvency process
Owes Rs 5.26 billion to IDBI Bank
Apex court hearing plea of homeowners
Meanwhile, PTI says dark horse Lakshadeep Pvt Ltd, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality, has emerged as the front runner to acquire Jaypee Infratech with a bid of around Rs 73.5 billion.
Lakshadeep has offered Rs 12 billion in cash to the banks, Rs 40 billion of land parcel and the rest in the form of long-term non-convertible debentures in the insolvency auction. A small equity stake to lenders is also part of the offer. Now, the committee of creditor will take a call on offers, including one by Adani Group, which had offered Rs 12 billion in cash, Rs 35 billion of land parcel and Rs 30 billion of backdated instruments whose net present value is Rs 5 billion to Rs 10 billion.
As many as 32,000 homebuyers have been affected by the company’s non-deliverance of projects, which have stayed unfinished for almost eight years. The company claims it has completed close to 13,500 homes, owners of which have or will receive occupation certificates. Sources said that the company was confident of completing the construction of the remainder flats by 2021.
According to industry sources, last year when the Real Estate Regulation Act was introduced, Jaypee had given a commitment to finish the construction of the pending flats in three years.
Sources also said that initially IDBI Bank had agreed to take the land parcel from Jaypee on condition that it would be bought back after a period of three years. However, the Reserve Bank of India did not recognise this debt swap and declared it a non-performing asset.
While IDBI Bank has taken JIL to the National Company Law Tribunal for insolvency for over a Rs 5.26-billion loan default, homebuyers dragged it to the SC. The SC is scheduled to resume hearing on the case this week.