Improving its offer, Suraksha has now promised to issue non-convertible debentures worth ₹1,200 crore to banks, taking its total offer to nearly ₹7,800 crore
Suraksha group on Monday submitted "improved revised" bid to acquire debt-laden Jaypee Infratech Ltd (JIL), offering more funds to banks while reducing timeline to complete some stalled projects for the benefit of homebuyers.
The Mumbai-based firm, which is pitted against NBCC to acquire JIL, did not submit its resolution plan on June 4 and rather sought at least seven days extension to sweeten its offer for both homebuyers and bankers. NBCC, however, submitted its resolution plan.
According to sources, Suraksha group has submitted its resolution plan just before the meeting of JIL's creditors panel scheduled for Monday. It has requested that JIL's Committee of Creditors (CoC) should consider its bid during the meeting.
Now, it is up to financial creditors, which includes homebuyers which have around 56 per cent voting share in the COC, to decide whether Suraksha's bid will be considered or not as the same has been submitted after the June 4 deadline.
According to sources, Suraksha group had offered more than 2,600 acre land to institutional financial creditors in its last bid submitted on May 18. Improving the offer, Suraksha has now promised to issue NCDs (non-convertible debentures) worth ₹1,200 crore to banks, taking its total offer to nearly ₹7,800 crore.
For homebuyers, the company has reduced the timeline of completion of some projects, wherever feasible. Moreover, Suraksha group will immediately infuse ₹300 crore if its bid is approved by the CoC to ensure construction works do not hamper till the resolution plan gets approved by National Company Law Tribunal (NCLT).
In a letter to Interim Resolution Plan (IRP) Anuj Jain, Suraksha group on June 4 asserted that it had already submitted a legally compliant resolution plan on May 18 and the bid was deliberated upon in the meeting of the CoC. Suraksha had said it plans to further revise the resolution plan to improve offering for both homebuyers and bankers.
Stating that the company never asked for any extension and always submitted bid before deadline, Suraksha had said: "we request you to grant us time of at least 7 days to submit an improved revised resolution plan, in the interest of lenders and homebuyers."
In the May 18 bid, Suraksha group had offered over 2,600 acre land to bankers and promised homebuyers to complete the pending over 20,000 flats in 42 months. Yamuna Expressway that connects Greater Noida to Agra will be retained by the company as per the bid.
Last week, financial creditors of embattled JIL decided to give time till June 4 to NBCC and Suraksha group to submit their final bids. The two-day voting process, which began on May 27, was conducted to decide whether a further extension should be given to both the contenders.
In its meeting held on May 24, the CoC of JIL decided to defer the voting process on the Suraksha group's bid and conduct voting process for allowing both parties to submit their final offers.
On May 20 meet, the CoC had decided to put Suraksha group to vote and reject NBCC's bid citing non-compliance related to its proposal for dissenting creditors. NBCC had protesed against its bid being declared as non-compliant.
This is the fourth round of the bidding process in the matter of JIL bankruptcy case. JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
In the first round of insolvency proceeding, the ₹7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders. The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids be invited only from NBCC and Suraksha.
Then, in December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
In March 2020, NBCC had got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court, which on March 24 this year, ordered that fresh bids should be invited only from NBCC and Suraksha.
The apex court had also directed that the resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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