18 FIRMS IN RACE FOR JAYPEE INFRA ASSETS

Jaypee Infratech, a subsidiary of Jaiprakash Associates and is undergoing insolvency proceedings at the behest of IDBI Bank, has received an interest from 18 potential bidders. A number of prominent corporate groups, including banks, asset restructuring companies and industry players, have taken part in the bidding process for the builder’s assets. VEENA MANI writes

Jaypee Infratech, a subsidiary of Jaiprakash Associates that is undergoing insolvency proceedings at the behest of IDBI Bank, has received interest from 18 potential bidders. A number of prominent corporate groups, including banks, asset restructuring companies and industry players, have taken part in the bidding process for the builder’s assets.

Amid a wider debate on weather promoters should or should not be allowed to take part in bidding for toxic firms, it is learnt that the promoters of Jaypee Infratech are keen to present a resolution plan.

A source said that these parties might not be interested in Jaypee Infratech as a whole, but might be keen on certain portions like the Yamuna Expressway, etc.

The insolvency resolution professional had invited expressions of interest from parties, stating that to be shortlisted, the party should be a corporate body with a minimum net worth of ~1,000 crore as on March 31.

A representative of deposit holders wanted their rights to be on a par with that of financial creditors, said an official who attended the committee of creditors meeting on Friday.

Construction activities by Jaypee Infratech, meanwhile, continue. Homebuyers are also being given possession, saida source familiar with the developments.

Jaypee Infratech’s case marked a new chapter in the evolving insolvency and bankruptcy code — this was the first time the code was dealing with consumers. In all other cases, transactions were usually with other business entities. With a code not having any provision for homebuyers, the insolvency regulator came up with a new form, which could be used by homebuyers to raise their claims.

Jaypee Infratech’s name was recommended by the Reserve Bank of India in its first list issued earlier this year. The RBI issued orders to banks in an attempt to resolve the massive problem of non-performing assets.

These parties might not be interested in Jaypee Infratech as a whole, but might be keen on certain portions like the Yamuna Expressway, etc, according to a source