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Adani offers lenders Rs 500 cr upfront in fresh bid for Jaypee Infratech
Business Standard  |  May 29, 2019

Dev Chatterjee Mumbai

The Adani group has again entered the race for debt-ridden Jaypee Infratech by making a non-binding offer of Rs 500 crore as upfront payment to lenders, employees and operational creditors.

 

The committee of creditors (CoC), scheduled to meet on May 30 to consider NBCC (India)’s offer, will also consider the Adani group’s fresh offer.

 

The Adani group has additionally offered 1,000 acres to lenders and Rs 1,700 crore to construct houses for home owners. Of the Rs 500 crore, lenders will receive Rs 23 crore, while the rest of the money will go to the employees and operational creditors. The Adani offer, if accepted by the lenders, would entail a huge haircut on Jaypee Infratech’s Rs 8,000-crore debt.

 

The Supreme Court had directed in August last year that Rs 750 crore deposited by the Jaypee group in the apex court would be transferred to the National Company Law Tribunal (NCLT) and continue to remain invested and follow directions of the NCLT, Allahabad Bench.

 

Last month, the Adani group participated in the first round of bidding in Jaypee Infra, but was unsuccessful. The group also bid to take over Ruchi Soya, which went to Patanjali Ayurved.

 

The CoC had in April this year rejected an offer by Suraksha Realty because it was revised downwards this year compared the first one in 2018 due to a fall in real estate prices. A source said the Adani group was interested in developing 25 million square metres worth Rs 5,000 crore along the Yamuna Expressway.

 

When contacted, a group spokesperson declined to comment on the report.

 

In its latest offer, NBCC has proposed Rs 200-crore equity capital, transferring 950 acres worth Rs 5,000 crore as well as the Yamuna Expressway to banks and the completion of flats by July 2023.

 

The offer was to settle an outstanding claim of Rs 23,723 crore of financial creditors. NBCC has made it clear it will withdraw its offer for the company if the government authorities rejected approval for the transfer of Jaypee’s land and the Yamuna Expressway.

 

Lenders were also not optimistic about NBCC’s another condition of income tax waiver for the next 30 years on land transfer.

 

“The conditional offers would put lenders at significant risk,” said a source in the committee of creditors.

 

Jaypee Infra had defaulted on loans taken from a consortium of 13 banks led by IDBI Bank and was on the RBI’s first list of 12 defaulters. Apart from Jaypee Infra, its erstwhile promoter Jaiprakash Associates has defaulted on loans from more than 30 banks with outstanding dues of around Rs 30,000 crore.

 

Jaiprakash Associates had also defaulted on fixed deposits, foreign currency convertible bonds and payments to the Noida Authority, according to a Supreme Court order dated August 9, 2018.

 

On the table

 

  • Makes a non-binding offer of Rs 500 crore as upfront payment
  • Additionally, offers 1,000 acres to lenders and Rs 1,700 crore to construct unfinished houses
  • If accepted, it would entail a huge haircut on Jaypee Infratech’s Rs 8,000-crore debt
  • Last month, the group participated in the first round of bidding for Jaypee Infra, but was unsuccessful