Lakshadeep emerges front-runner for Jaypee Infratech with Rs7,350 crore bid
NEWDELHI: Dark horse Lakshadeep Pvt. Ltd has emerged as the front-runner to acquire Jaypee Infratech with a bid of around Rs7,350crore, butwaylowerthan what the real estate developer had proposed to lenders a year back to pay off debt.
Lakshadeep Pvt. Ltd, a joint venture between Sudhir Valialed Suraksha Asset Reconstruction Company and Mumbaibased Dosti Reality, has offered Rs1,200croreincashtothebanks, Rs4,000 crore of land parcel and the rest in formoflong-termnonconvertible debentures in the insolvency auction, people privy to the development said.
Asmallequitystaketolenders is also part of the offer. It beat Adani Group, which had offered Rs1,200 crore in cash, Rs3,500 crore of land parcel and Rs3,000 crore of back- dated instruments whose net present value is Rs500 crore to Rs1,000 crore.
Lakshadeep’s offer is, however, notbetter thantheproposal Jaypee Infratech Ltd (JIL) had made to the joint lenders forum chairedbyMDsofIDBIBankand IIFCL on 8 March 2017, months before the real estate company wasreferredtotheNationalCompany Law Tribunal (NCLT). To pay off Rs8,500 crore of debt including interest, JIL had offered to pay 10% per annum interest on Rs3,140 crore of sustainable debt to beretained onits booksandtheresttobepaidoffby giving 448 acres of land worth Rs2,340croreaswellasoptionally convertible debentures andconversionofdebtintoequity, people in the know said.
Lenders were to get an equity of 23% following this exercise where Yes Bank had agreed to give Rs1,100 crore to promoters for infusing in the business.
But the joint lenders form did not act on the understanding reached during the March meeting. In June 2016, the company figured in the Reserve Bank of India’s list of 12 big corporate defaulters, whichwasreferredto theNCLTforinsolvencyproceedings. People said soon after, the firm made an offer to lenders to square of all the debt from pro- ceeds of landswapandmonetisation of revenues expected from toll on its expressway.
The company has now approached the Supreme Court with the plea that it be allowed to submit a resolution plan or be permitted to submit a bid in the insolvency proceedings. JIL, which has as per the Supreme Court directions already deposited Rs650croreforcompensation to home-buyerswhosepromised houses have not been delivered, says it is in the best position to complete the unfinished construction within 3 years.
Otherbidderswilltakeatleast five years to complete the work. JIL feels the company whoseliquidationvalueisRs15,000croreis being sold for less than half.