The JSW Group has surfaced as the topmost bidder for Jaypee Infratech, presenting a little more than Rs 9,900 crore to banks surrounded by claims from residential buyers that they should be reasoned at the same level as finance creditors in the resolution plan for the debt-loaded firm.
Two senior functionaries who know of the bids said that Jaypee Infratech, which is presently going through insolvency proceedings, has received a total of six offers. Curious buyers are the JSW group, the Adani group, Jieyang Zhonguci a realty firm from China, Deutsche Bank, Sudhir Walia-promoted Suraksha ARC, and Jaypee Infratech’s parent company Jaiprakash Associates.
“JSW has given the best offer to lenders,” said a senior official aware of the development. “The evaluation process on the eligibility criteria is still on.” Jaypee Infratech is facing claims from home buyers following which the Supreme Court restrained promoter Manoj Gaur and his family from selling personal assets.
However, the court has also ruled that financial lenders can continue with the resolution process, which involved inviting bids from prospective buyers. “The JSW Group has offered Rs 9,914 crore as a one-time payment to lenders,” said one of the officials cited above. “The proposal puts the onus on the lenders to settle the dues of home buyers, farmers and any penalty imposed by RERA (Real Estate Regulation and Development Act, 2016).”
“So even as JSW is offering to pay the entire dues of the lenders, there will still be an element of haircut since lenders will have to enter into settlements with other claimants like home buyers and farmers and account for regulatory penalties,” said another office-bearer. Loan givers anticipate that these liabilities would be between Rs 1,500-2,000 crore. Resolution professional Anuj Jain and JSW has not commented on this issue.
JSW Group had also come across as the topmost bidder for Monnet Ispat that is also being auctioned off by a bankruptcy court. Nevertheless, JSW was unable to succeed as topmost bidder for Bhushan Steel and Bhushan Power. The Tatas won the bid.