Erstwhile promoter JAL demands CoC to consider its offer

New Delhi: Jaiprakash Associates Ltd (JAL), the erstwhile promoter of bankrupt-Jaypee Infratech, has said its settlement proposal without any "haircuts" should be considered by the creditors' panel, which is set to take a call on two existing resolution plans for the company this week. Currently, state-owned NBCC and Suraksha group are in the race to acquire Jaypee Infratech Ltd (JIL), which went into insolvency proceedings in August 2017.

In a letter to JIL's Interim Resolution Professional (IRP) Anuj Jain, the Chairman of JAL Manoj Gaur has urged him to consider JAL's settlement offer, which was submitted before the Supreme Court in 2019.

Asserting that JIL has more assets than liabilities, Gaur has also claimed that lenders would not be entitled to exercise their rights on loan guarantors if the realty firm is sold at a "throw away price".

The Committee of Creditors (CoC) and homebuyers are scheduled to meet this week to discuss whether more time should be given to NBCC and Suraksha group to submit their revised and final bids for JIL.

Urging that JAL's offer should be placed before the CoC, Gaur said the settlement of total liability of Rs 9,783 crore to secured financial creditors is proposed to be done by way of upfront payment, land swap and long terms debentures with a total value of about Rs 12,500 crore. For homebuyers, he said that JAL would deploy funds for home construction to the tune of Rs 1,650 crore, out of which Rs 400 crore would be upfront.

Further, JAL had offered to make repayment of fixed deposits and outstanding dues of YEIDA (Yamuna Expressway Industrial Development Authority) in full, as per the plan that was submitted to the apex court in 2019.