Case Jaypee Infra: Suraksha can offer more cash and land to lenders, a higher penalty to buyers

New Delhi, December 2 () Mumbai-based Suraksha Realty, which is in the race with state-owned NBCC to acquire Jaypee Infratech in bankruptcy, is likely to offer cash and additional land to lenders, and a higher penalty for delay in compensation to homebuyers to make their final resolution is more lucrative for financial creditors, sources said.

NBCC Ltd is also actively considering offering more land to lenders and reducing the deadline for the completion of some 20,000 apartments.

At the last meeting of the Creditors Committee (CoC) held on November 28, the lenders asked NBCC and Suraksha Realty to make a final offer before next Tuesday (December 3) after reviewing their previous offers.

According to sources, Suraksha Realty is likely to increase the initial payment to the lenders of its current offer of Rs 25 crore. Under the land debt swap agreement, the company is considering increasing the supply of parcels in terms of value. Currently, it has offered 1,934 acres of land worth Rs 7,800 million.

For homebuyers, Suraksha Realty is looking to reserve more land for the payment of compensation for delay compared to its current proposal to allocate land worth Rs 100 for this purpose.

The company has proposed to bring Rs 2,000 crore as working capital to complete the construction in the next three years and will retain the Yamuna highway with itself.

On Sunday, sources said that NBCC in the final offer could withdraw its offer related to unclaimed apartments and promised land. Instead of these two offers, it could provide more plots, more than 1,426 acres offered in its latest resolution plan.

NBCC is also considering reducing the deadline to complete projects pending its current offer to give possessions in four years.

To resolve a pending claim of almost Rs 9,800 million to the bankers, NBCC in its offer presented last month offered 1,426 acres of land worth Rs 5,000 crore. Other than that, he offered 75 percent of 858 acres of land, which has been promised by developer Jaiprakash Associates Ltd and now claimed by Jaypee Infratech.

In addition, NBCC offered to share 50 percent of the proceeds from the sale of unclaimed apartments after deducting accounts receivable from previous buyers and any expenses related to taxes, fees and legal.

The Yamuna highway, which connects Noida with Agra, will be transferred to the lenders, but before that, NBCC has proposed taking a debt of Rs 2,500 million against the highway to complete the pending floors.

Jaypee Infratech, a subsidiary of Jaiprakash Associates, affected by the crisis, entered into insolvency proceedings in August 2017 after the National Court of Corporate Law (NCLT) admitted a request from a consortium led by IDBI Bank.

Anuj Jain was appointed as a provisional resolution professional to carry out the insolvency process and also manage the affairs of the company.

In the first round of insolvency proceedings last year, lenders rejected the offer of Rs 7,350 million from Lakshdeep, part of the Suraksha Group. The CoC rejected the offers of Suraksha Realty and NBCC in the second round held in May-June of this year.

The matter reached the National Court of Appeals for Company Law (NCLAT) and then the Supreme Court.

On November 6, the Supreme Court ordered the termination of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will only be invited by NBCC and Suraksha Realty. Up to 13 banks and more than 23,000 homebuyers have the right to vote in the CoC. Buyers have almost 60 percent of the votes. For an offer to be approved, 66% of the votes are required. It has been admitted that homebuyers amount to more than Rs 13,000 million. MJH HRS