JSW Group offers highest bid for Jaypee Infratech
, ET Bureau|
Feb 23, 2018, 06.51 AM IST
MUMBAI: The JSW Group has emerged as the highest bidder for Jaypee Infratech, offering little over Rs 9,900 crore to banks amid claims from home buyers that they should be considered on a par with financial lenders in the resolution plan for the debt-laden company.
Two senior officials aware of the bids told ET that Jaypee Infratech, which is currently facing insolvency proceedings, got a total of six offers. Interested buyers are the JSW group, the Adani group, Jieyang Zhonguci a real estate 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 official. Lenders expect these liabilities to be in the range of Rs 1,500-2,000 crore. Resolution professional Anuj Jain and JSW did not respond to an email sent by ET.
JSW Group had also emerged as the highest bidder for Monnet Ispat, which is also being auctioned off by an insolvency court. However, JSW did not make it as highest bidder for Bhushan Steel and Bhushan Power, for which the Tatas made the best offer.
Two senior officials aware of the bids told ET that Jaypee Infratech, which is currently facing insolvency proceedings, got a total of six offers. Interested buyers are the JSW group, the Adani group, Jieyang Zhonguci a real estate 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 official. Lenders expect these liabilities to be in the range of Rs 1,500-2,000 crore. Resolution professional Anuj Jain and JSW did not respond to an email sent by ET.
JSW Group had also emerged as the highest bidder for Monnet Ispat, which is also being auctioned off by an insolvency court. However, JSW did not make it as highest bidder for Bhushan Steel and Bhushan Power, for which the Tatas made the best offer.
