JSW Infra supports Suraksha Realty in changing Jaypee Infratech
New Delhi, December 5 () JSW Infrastructure said Thursday that it reached an agreement with Suraksha Realty to provide financial and technical support to the Mumbai-based company that submitted the final offer to acquire Jaypee Infratech, in debt.
JSW Infra said it issued a letter of support to Suraksha Realty to provide financial, strategic and technical assistance in the delivery of outstanding flats to Jaypee homebuyers within the deadline.
Suraksha Realty and state-run NBCC on Tuesday presented their final offers to acquire bankrupt real estate Jaypee Infratech through the insolvency process.
Media reports had suggested that Suraksha Realty was in talks with the JSW group to obtain technical and operational assistance to complete the outstanding housing projects of Jaypee Infratech.
We see Suraksha Realty's plan as the best located to guarantee the right resolution for homebuyers. We will intervene with the financial, strategic support and technical expertise necessary to help Suraksha Realty deliver the pending floors to homebuyers within the stipulated timeframe, JSW infrastructure finance director Lalit Singhvi said.
Singhvi said that Jaypee Infratech buyers would benefit greatly if Suraksha Realty's resolution plan gets the highest number of votes.
Both NBCC and Suraksha Realty have offered more land plots to the lenders in their final offers. The lenders had asked the two suitors to sweeten their resolution plans and submit their bids before December 3.
This is the third round of the bidding process for the resolution of Jaypee Infratech, indebted, a subsidiary of Jaiprakash Associates Ltd (JAL).
NBCC in its final offer has offered 1,526 acres of land to lenders compared to its previous proposal of 1,426 acres. For homebuyers, the term for completion of more than 20,000 apartments has been reduced to three and a half years from the previous four years.
As requested by the lenders, NBCC withdrew its two previous offers: 50 percent of the proceeds from the sale of unclaimed flats and 75 percent of the 858-acre parcels, which has been promised by the JAL developer and currently under litigation .
For the lenders, the public sector firm has proposed to increase the concession agreement for 10 years on the Yamuna highway, which has proposed transferring it to the bankers. However, NBCC has proposed taking a debt of Rs 2,500 million against toll revenues from the highway, which connects Noida and Agra, to complete the pending floors.
On the other hand, Suraksha Realty has also sweetened its resolution plan by offering 2,220 acres of land worth Rs 9,800 crore under the land debt swap agreement. Previously, he had offered 1,934 acres of land worth Rs 7,857 crore. This will cover the entire claim of the lenders, which is Rs 9.8 billion rupees.
Advance cash payment to lenders has increased to Rs 175 crore from Rs 25 crore before.
For homebuyers, Suraksha Realty has now reserved land worth Rs 250 million against land plots worth Rs 100 million previously allocated.
In addition, he has promised to provide additional land plots worth Rs 250 million to homebuyers, if 858 acres of land under litigation returns to Jaypee Infratech. 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. SID MR