Jaypee Infratech promoter Manoj Gaur makes a settlement offer to lenders

JSPL makes prepayment of Rs 2,462 crore to lenders

"I may reiterate that we stand by our said proposal, which offers no haircut and proposes to settle the claims of all stakeholders. However, even then if any Financial Creditor is of the view that it provides for any haircut in any manner, we undertake that such shortfall (if any) will be made good from the operations of JIL within 05 years of acceptance," Gaur claimed in this letter.

He stated that his latest submission is based on the Supreme Court’s recent decision with respect to personal guarantors of bankrupt firms.

In a judgment dated May 21, 2021, the Supreme court held that guarantors are not exempt from their liabilities, even if a bankrupt firm is resolved under the Insolvency and Bankruptcy Code. The order would allow creditors to go after promoter guarantees to recover dues due to any haircut they might have taken on the loans. However, Gaur claimed the judgment simultaneously provides a legal right or entitlement to promoters of Jaypee Infratech to object to any resolution plan which calls for a haircut for the creditors.

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He claimed that he has constantly attempted to clear Jaypee Infratech’s debt, but his proposals have been ignored by lenders.

"The proposals offered by undersigned on behalf of JAL (offering zero haircuts) are being still ignored repeatedly in favor of resolution plans (offering exorbitant haircuts). I am not able to comprehend how and why the lenders have been unwilling to accept our proposal and are continuously putting resolution plans to vote which entails exorbitant haircuts. This is astonishing especially when the asset value of JIL is far greater than the debt owed to the creditors, partly due to the efforts by me and JAL to reduce such liabilities," Gaur claimed.

This is not the first time Gaur has attempted to make an offer to withdraw the company from bankruptcy proceedings. He had approached the lenders in 2019 as well, offering to clear dues of financial creditors totalling Rs 8,358 crore out of their admitted claim of Rs 9,783 crore at the time.

Asking the IRP to defer any voting on Jaypee Infratech’s resolution plans in his recent letter, Gaur requested his letter be placed before the Committee of Creditors (CoC).

In their last meeting, the CoC had deferred the voting after NBCC’s last-minute modification in plans. The lenders decided that they will conduct another voting this week to decide on whether to allow a seven-day extension to both the bidders- Suraksha Group and NBCC- to submit their final offers to acquire Jaypee Infratech, CNBC-TV18 reported on Monday. The lenders will also propose a time-breaker formula, such that if the resolution to allow additional time to submit new bids is not approved by the CoC within the stipulated time, Suraksha Group’s May 18 bid will be put to vote.