At least half a dozen bidders, including the Adani Group, JSW, Deutsche Bank, Sudhi Walia-promoted Suraksha Asset Reconstruction Corporation and Chinese realtor Jieyang Zhonguci, apart from the Kotak Realty-Cube Highways combine, are in the fray for the company facing insolvency action. The bids are due to be opened next week, and the resolution plan is expected to be finalised by March-end or early April, sources told TOI.
Last August, the National Company Law Tribunal had initiated insolvency proceedings against Jaypee Infratech with the resolution process now in the =final phase. The Supreme Court has also stepped in and appointed an amicus curiae to protect the interests of homebuyers.
Sources said that apart from upfront payment, Kotak Realty Fund and Cube Highways – both backed by funding from Abu Dhabi Investment Authority – have proposed to swap a part of the land for loans taken by Jaypee Infratech that it is yet to repay. This proposal was made by the company’s majority shareholder, Jaypee Associates, to banks last June but was rejected. Jaypee Associates had also submitted its bid but it was not opened following recent amendments to the law that barred promoters of companies that had been a non-performing asset (NPA) for over a year from bidding. A loan is classified as an NPA if it remains unpaid for 90 days at a stretch.
In most insolvency cases, the resolution plan comes with the bidders offering to clear a part of debt, which the Economic Survey said was as high as 80% in the initial set of companies where NCLT had ordered insolvency action. Initial estimates had suggested that Rs 2,500-3,000 crore could be required for completing construction work, but the fund requirement may be much higher.
While Kotak Realty is aiming to develop and monetise the high land bank available to Jaypee Infratech all the way from Noida to Agra along two expressways, Cube Highways is looking to tap the revenue potential from the Taj Expressway, where traffic is expected to increase with Agra, now that it is linked to Lucknow through a new expressway.