Mumbai-based Suraksha Group, which recently got the NCLT approval to acquire Jaypee Infratech, will infuse Rs 250 crore in the debt ridden Jaypee Group firm and also arrange Rs 3,000 crore loan for completion of around 20,000 apartments in various stalled projects over the next four years.
As per the resolution plan of Suraksha Group submitted in June 2021, Jaypee Infratech Ltd (JIL) will get delisted and public shareholders will be given an aggregate exit at a price of Rs 0.14 crore.
On March 7, National Company Law Tribunal (NCLT), Principal Bench New Delhi approved the resolution plan of Suraksha Realty Ltd and Lakshdeep Investments and Finance Pvt Ltd to takeover JIL. A monitoring committee will be set up by Interim Resolution Professional (IRP) in seven days, and it will take all necessary steps for expeditious implementation of the resolution plan.
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In a regulatory filing on Wednesday, Jaypee Infratech shared specific features and details of the Resolution Plan as approved by the NCLT under the Insolvency and Bankruptcy Code, 2016.
As per the resolution plan submitted by Suraksha Group to Committee of Creditors (CoC) in May-June 2021, the infusion of Rs 125 crore as equity and Rs 125 crore debt needs to be done in Jaypee Infratech within 90 days of the approval date.
Suraksha Group will arrange loan/credit facility of Rs 3,000 crore within 90 days of the approval date, to be utilised as and when required, on need basis for completion of the projects.
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To institutional financial creditors, Suraksha Group will issue zero coupon Non-Convertible Debentures (NCDS) worth Rs 1,280 crore and also provide around 2,550 acre land worth Rs 6,457 crore (fair market value). JIL's lenders have submitted a claim of Rs 9,783 crore.
"The equity shares of the company are proposed to be delisted ...Existing public shareholders shall be given an aggregate exit at a price of Rs 0.14 crore which is not less than the liquidation value, in the opinion of the Resolution Applicants...No amount shall be paid to the promoter shareholders," the filing said.
On Tuesday, NCLT approved the Suraksha group's bid to buy Jaypee Infratech Ltd, a development that comes as a relief for more than 20,000 homebuyers nearly six years after the debt-ridden company entered into the insolvency process.
The ruling, which came nearly two years after the CoC gave its nod for Suraksha group's offer, will pave the way for the completion of more than 20,000 housing units in various stalled projects of JIL spread mainly across Noida and Greater Noida in the national capital region.
While passing the order, the tribunal rejected the objections made by Yamuna Expressway Industrial Development Authority (YEIDA), dissenting financial creditor ICICI Bank and JIL's parent firm Jaiprakash Associates Ltd (JAL).
In its 491-page order, the NCLT had directed that JIL will get Rs 542.62 crore out of Rs 750 crore deposited by Jaiprakash Associates Ltd (JAL) in the registry of the Supreme Court, while Rs 106.9 crore will go to an escrow account of homebuyers. JAL will get only Rs 100.48 crore.
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As per the order of the Supreme Court, JAL had in 2018 deposited a total of Rs 750 crore in several tranches before the registry of the apex court.
On November 22 last year, the NCLT reserved its order over the plea filed by the IRP of JIL seeking approval for the Suraksha group's bid. In June 2021, the Suraksha group received the approval of the CoC, which includes banks and homebuyers.
In the fourth round of the bidding process to find a buyer for JIL in 2021, the Suraksha group won the bid with 98.66 per cent votes. As many as 12 banks and more than 20,000 homebuyers have voting rights in the CoC. The company had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
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In the first round of insolvency proceedings in 2018, the Rs 7,350-crore bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders.
The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha.
Then, in December 2019, the CoC approved the resolution plan of NBCC during the third round of the bidding process.
In March 2020, NBCC got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court.
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On March 21, 2021, the apex court ordered a fresh round of bidding between NBCC and Suraksha group only.
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