Promoters submit ~10 bn revival plan for Jaypee Infratech

Jaypee group Chairman Manoj Gaur made a fresh effort to gain back control of Jaypee Infratech on Monday, a real estate company for which another firm has already been named the highest bidder in ongoing insolvency proceedings.

In its resolution plan, submitted to the Committee of Creditors (CoC) and the resolution professional, Gaur made a ~10 billion offer to pay off bank loans and complete the stuck housing projects, sources said. Gaur also promised a ~2.3 billion haircut to Jaypee Infratech lenders and minority shareholders and possession of homes by 2021.

Lakshadweep Pvt Ltd, the company that the CoC has chosen as the highest bidder, has offered to buy the realty firm at a haircut of ~28 billion. It has offered to give possession to homebuyers by 2024, as well as 2,000 equity shares each in Jaypee Infratech, sources said.

Lakshadweep is a joint venture between Suraksha Asset Reconstruction Company and the Mumbai-based Dosti Realty.

The CoC will vote on Lakshadweep's resolution plan on Tuesday. If Lakshadweep's bid is approved, the resolution plans by both Jaypee and Lakshadweep are likely to be put before the Supreme Court, sources said.

The Supreme Court had earlier asked a "competent authority" to hear Jaypee's proposal to regain control of the real estate arm. It had also asked Jaypee Infratech to submit an amount with the Supreme Court, in case homebuyers needed to be compensated. Jaypee Infratech had submitted ~7.5 billion to the Supreme Court after the order.

As many as 32,000 homebuyers are yet to get possession of their flats. A 50 per cent discount on the stamp duty and free maintenance are also in the offing, sources said.

Lakshadweep is arranging a loan of ~40 billion from banks and writing down the existing equity to the extent of 99.99 per cent. The Jaypee group said it would arrange ~27 billion through toll monetisation and ~10 billion through additional working

capital, according to sources. While Lakshadweep promised an upfront payment of around ~20.29 billion, the Jaypee group has proposed to pay ~12.55 billion. As for operational creditors, the Jaypee group's plan proposes to pay ~4 billion as opposed to a waiver sought by Lakshwadeep, sources said.