The Jaypee Infratech case involves more than 20,000 homebuyers who have been anxiously waiting for the completion of their homes for over a decade.
As the 21st meeting of the committee of creditors (CoC) gets underway on May 20, here’s a look at the two ‘sweetened’ bids submitted by the government’s construction arm NBCC and Mumbai-based Suraksha Group.
The two entities are in the fray to acquire the embattled Jaypee Infratech Ltd through an insolvency resolution process and complete 20,000 homes for which homebuyers have been waiting for over a decade.
The two firms had submitted their improved offers to the Committee of Creditors on May 19 under the Corporate Insolvency Resolution Process (CIRP). This is the fourth round of the bidding process.
The CoC meeting is to be held on May 20 afternoon to discuss the final resolution plans.
The Suraksha Plan
The Surakasha group has proposed to give 2,651 acres to lenders.
It has earmarked 1,486 acres to the dissenting lenders out of the total land parcels offered in the proposal
Suraksha Group intends to keep Yamuna Expressway with itself
It has offered to complete pending works of around 20,000 housing units in 42 months.
It has proposed a line of credit of Rs 3,000 crore as working capital for the construction of projects.
It has given an undertaking that any shortfall to the dissenting creditors will be met by the company by way of more funds or assets.
It has planned a Rs 125 crore worth fund infusion into Jaypee Infratech to start work
The company plans to avail Rs 3,000 crore in loans and use it for finishing the pending residential projects
It will also have access to Rs 300 crore which Jaiprakash Associates owes.
Rs 750 crore is due to be received from toll road collections from Yamuna Expressway
As per the plan, Suraksha has estimated that Rs 4,300 crore will be required as working capital to complete pending projects
The plan also talks of keeping aside land parcels worth Rs 400 crore in a trust which will be used to pay dues to homebuyers if there is a delay
For delays that extend more than a year, the firm will pay a penalty of Rs 5 per sq ft per month
For those seeking a refund, it will pay Rs 65 crore in two instalments.
The NBCC Plan
NBCC has decided to offer 1,903 acres to lenders, both assenting and dissenting
It has offered an additional 200 acres, especially for assenting creditors besides Yamuna Expressway road project that connects Noida and Agra in Uttar Pradesh.
NBCC will transfer over 85 percent of stake in the road projects to banks and financial institutions.
It has offered to put in Rs 10 crore through equity or debt into the embattled firm
The plan talks about raising Rs 2,000 crore through securitising toll receipts of Yamuna Expressway
It has provided for tower wise schedule of delivery
All units, including plots, would be delivered within 42 months.
For homebuyers, NBCC has offered Rs 5 per square feet as the delay penalty if the delivery is delayed beyond 12 months
For refund seeking homebuyers, NBCC will pay Rs 62.4 crore spread over four years
100% upfront payment of FD holders’ whose principal dues amount to Rs 29.19 crore within 365 days from the approval date.
NBCC has also proposed to set up a single-window redressal system to help resolve grievances of homebuyers
It has also considered homebuyers’ representative in the steering committee
The total operational debt is proposed to be settled by payment of Rs 5 crore