Jaypee likely to move NCLT over bid
The Jaypee group is devising a strategy to move the National Company Law Tribunal (NCLT) with its bid for the beleaguered Jaypee Infratech after the Supreme Court allowed it to file a resolution plan.
However, a decision is yet to be taken, sources said. The Supreme Court’s order said Jaypee group was at liberty to submit a representation to the “competent authority”. The representation should be considered in accordance with law, the order said. Distancing itself from any opinion on this matter, the court, however, made it clear that the resolution professional (RP) would be at liberty to finalise the plan. “While the Supreme Court order is postive, the group is working on its strategy,” a source, close to the Jaypee group, said.
Lawyers say since the competent authority is not defined by the apex court, the RP will not alone take a call on Jaypee group’s plan. It is the NCLT that will decide on the matter.
Meanwhile, the RP would take up the issue at the meeting of the committee of creditors, sources said. However, he is not considering it at this stage.
As multiple bidders, starting from Sudhir Valia of Suraksha Asset Reconstruction Company to the Adani Group, eye the embattled real estate biggie, fears of the valuation of the company being slashed to less than half had made the promoters rush to the Supreme Court to reclaim the company. While the bidders aremaking offers ranging between ~70 billion and ~80 billion, sources close to the company said the liquidation value of the firm was not less than ~160 billion. The company has over 3,300 acres unused land worth ~160 billion. In an affidavit to the Supreme Court, Jaypee Infratech had made its offer and claimed that its offer was better than that of the other bidders.
According to sources, Deutsche Bank is ready to give ~14 billion interim funds to run Jaypee Infratech. After ~500 billion, Jaypee Infratech submitted ~1 billion in homebuyers’ escrow account to the Supreme Court. The court on March 21 had asked it to deposit ~2 billion with its registry in two instalments. It had asked the group to deposit ~1 billlion by April 15 and the rest by May 10. While IDBI Bank has taken Jaypee Infratech to the NCLT for insolvency for ~5.26-billion loan default, homebuyers dragged it to the Supreme Court.
Meanwhile, for homebuyers, if the government agrees with the recommendations of the high-level committee, they will be treated as financial creditors and get a share of the spoils.