Lenders to Jaypee Infratech will have to take a haircut of over Rs 3,700 crore while 20,000 homebuyers will not get paid any penalty for delay in construction of their homes in the takeover proposals brought by Mumbai-based Suraksha Realty and state-owned NBCC for the debt-laden firm.
As against the admitted claims of secured financial creditors of Rs 9,783 crore, Suraksha and NBCC are offering repayment of only 62 per cent of their outstanding dues despite the liquidation value of the company being around Rs 13,000 crore, sources privy to the development said.
The two suitors on December 3 submitted revised offers for the takeover of the debt-laden firm that just a few years back built the country's first expressway wide enough to allow fighter jets to land in emergency situations.
While bringing in very little cash, the two firms have offered land out of the land bank of Jaypee Infratech to settle some of the dues of the lenders. Sources said neither is offering any penalty to homebuyers whose houses has been delayed.
Homebuyers have received delay penalty of Rs 325 crore during the insolvency but the two bidders, called resolution applicants under the Insolvency and Bankruptcy Code, are not offering any, they said, adding that possession of over 7,500 flats has also been given in the last two years.
Jaypee Infratech's revenue stood at over Rs 1,000 crore in the first half of this fiscal with positive EBIDTA of Rs 43 crore, sources said. The net worth of the company stood at around Rs 3,500 crore.
NBCC is offering to infuse Rs 120 crore as equity in Jaypee Infratech and Surakasha only Rs 25 crore, while the two bidders are estimated to gain by over Rs 10,000 crore from underlying assets of the company including land bank, additional FSI, hospitals and expressway, sources said.
On December 3, NBCC and Suraksha Realty offered more land parcels to lenders in their final bids to acquire bankrupt realtor Jaypee Infratech through the insolvency process. This is the third round of bidding process for resolution of Jaypee Infratech, which is a subsidiary of crisis-hit Jaiprakash Associates Ltd (JAL).
Sources has earlier said NBCC in its final bid has offered 1,526 acres of land under the land-debt swap deal. It has proposed to complete the pending flats in three-and-a-half years but is not offering any penalty to homebuyers for delays in completion of apartments.
For lenders, the public sector firm has also proposed to increase concession agreement by 10 years on Yamuna Expressway, which it has proposed to transfer to bankers. However, NBCC has proposed to take Rs 2,500 crore debt against toll income of the expressway, which connects Noida and Agra, for completion of pending flats.
On the other hand, Suraksha Realty is offering 2,220 acres of land under the land-debt swap deal. It has increased upfront cash payment to lenders to Rs 175 crore from Rs 25 crore earlier. For homebuyers, Suraksha Realty has set aside land worth Rs 250 crore for delay penalty but is not infusing any fresh fund for this purpose.
Suraksha will retain Yamuna Expressway with itself, but has proposed a line of credit worth Rs 2,000 crore for completion of pending housing projects. Jaypee Infratech went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as the interim resolution professional (IRP) to conduct the insolvency process and also manage the affairs of the company. In the first round of insolvency proceedings conducted last year, Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The Committee of Creditors (CoC) rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court. On November 6, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Homebuyers have nearly 60 per cent votes. For a bid to be approved, 66 per cent votes are required. Homebuyers' claim amounting to over Rs 13,000 crore has been admitted.