Suraksha offers land worth Rs 7,857 cr to Jaypee Infra's lenders

Last Updated: Mon, Nov 25, 2019 12:08 hrs
A man walks in front of a billboard of Jaypee Infratech in Mumbai

New Delhi: Mumbai-based Suraksha Realty has offered land parcels worth Rs 7,857 crore to the financial creditors of the insolvent Jaypee Infratech along with an upfront infusion of Rs 25 crore.

The total repayment to the lenders offered by Suraksha is Rs 7,882 crore, against the Rs 9,782.60 crore claim of the lenders admitted into the insolvency proceeding.

The other contender NBCC (India), in its resolution plan has offered to pay the full amount of Rs 9,782.60 crore through transfer of land bank worth Rs 5,001 crore, transfer of the Yamuna Expressway and half of the profits generated from the sale of unclaimed real estate units among others.

Suraksha, in its resolution plan has assured an upfront payment of Rs 25 crore within 90 days of approval through infusion of funds by way of equity. "The funds shall be transferred to the SPV (special purpose vehicle) which shall be further infused into the corporate debtor (JIL) for repayment of the debt," its resolution plan said.

The resolution plan lays down several options of structure of the debt land swap, one of them being "simple sub-lease" or direct transfer of land as conveyance and another being "full slump exchange structure".

As per the simple sub-lease method, Jaypee would directly transfer the land as conveyance. This option, however, is subject to conditions such as the Income Tax department granting waiver of tax to JIL and lenders agreeing to incur stamp duty and registration cost, as per the resolution plan.

In this way, the Suraksha's plan has laid down several options and procedures along with their respective conditions that come with them.

It also says that upon completion of the debt land swap, the institutional financial creditors shall withdraw all enforcement actions, notices under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI), cases, FIRs and complaints against Jaypee Infratech in any court or government agency.

Regarding the source of funds for the completion of the projects among other expenditure such as insolvency proceedings cost and upfront payment to the banks and fixed deposit holders, the company in its plan said that it has the capability of upfront payment of Rs 125 crore, and would arrange Rs 2,000 crore as loan.

It also mentioned the Rs 800 crore as a source which Jaiprakash Associates, the parent company of JIL had deposited in the Supreme Court.

JIL's Committee of Creditors (CoC) would meet on November 28 to discuss over the resolution plans. Both the bidders -- NBCC and Suraksha Realty -- would have to submitted their final resolution, if any, by December 3.

As per the minutes of the CoC's previous meeting on November 14, the voting process on the resolution plans for the bankrupt company will start on December 8 and it would go on till December 11.