The two-horse race to acquire debt-ridden Jaypee Infratech has reached its final lap, with both Suraksha Realty and NBCC submitting final bids to the Committee of Creditors (CoC). People aware of the development confirmed to CNBC-TV18 that both Suraksha and NBCC submitted revised offers to acquire Jaypee Infratech to the CoC.
Suraksha Realty, as per people aware of the talks, has approached Sajjan Jindal-led JSW Group's JSW Infratech to provide technical and financial support to the company in its bid to acquire Jaypee Infra, but those talks are at initial stages.
One of the people quoted above said that the nature of the tie-up between Suraksha Realty and JSW Infratech- who had also evinced interest in acquiring
Jaypee Infratech in an earlier round fo bidding- had not been firmed up yet.
Suraksha Realty has now revised its offer, and is proposing to pay Rs 175 crore as an upfront cash payment to lenders versus Rs 25 crore offered initially, and has also increased the land offered in lieu of debt to 2,220 acres from about 1,900 acres offered earlier, said an executive aware of the bid details. He added that Suraksha Realty has also proposed a delayed penalty payment of Rs 10 per square foot per month to homebuyers, and hopes to complete the construction of flats in three years time.
NBCC, on the other hand, has not offered any upfront cash payment to lenders, but has also increased the land offered in lieu of debt to 1,526 acres from about 1,450 acres offered earlier, added a senior executive in the know. Further, NBCC has proposed a delayed penalty payment of Rs 5 per square foot per month to homebuyers and hopes to complete the construction of flats in three and a half years time versus four years initially estimated.
As per a banking executive who spoke on the condition of anonymity, the creditor's committee will now meet on Saturday (December 7), to declare the highest bidder (H1) and thereafter begin voting on the final resolution plan of the highest bidder.
One of the people quoted above told CNBC-TV18 that while Suraksha Realty may have made a higher offer to lenders, the 20,000 odd homebuyers -who constitute almost 58 percent of the CoC- of Jaypee Infratech are in favour of a government-backed entity like NBCC taking over the project.
While Suraksha Realty and JSW Infratech declined to comment on this story, NBCC's response was awaited at the time of publishing this story. Jaypee Infratech owes over Rs 10,000 crore of debt to an IDBI Bank-led consortium and was referred to the National Company Law Tribunal (NCLT) by the Reserve Bank of India (RBI) in 2017.
First Published: Dec 3, 2019 10:12 PM IST
