Jaypee Infratech CoC to meet to evaluate expressions of interest

The re-constituted committee of creditors (CoC) for Jaypee Infratech, a subsidiary of the Jaypee Group, is set to meet on Tuesday to evaluate potential bidders for the company, multiple sources familiar with the matter told CNBC-TV18.

The CoC will also have representatives of homebuyers.

Sources told CNBC-TV18 that the lenders will be evaluating the expressions of interest (EoI) submitted and will decide on the evaluation matrix for the selection of a potential resolution applicant. Final bids for the company are likely to be placed by mid-January, said a source.

Earlier, five companies- NBCC, Kotak Investment, L&T Infrastructure, Singapore-based Cube Highways and Suraksha ARC-Lakshdeep had submitted expressions of interest for taking over the company.

L&T Infrastructure, however, is interested in the 165-km Yamuna Expressway but not for the development of land parcels attached to the expressway belonging to the company.

This is the second attempt towards  insolvency resolution for the debt-ridden firm. In the first round, Suraksha ARC-Lakshdeep’s bid of close to Rs 7,000 crores could not get the adequate votes from the CoC and was therefore rejected.

Subsequently, the Supreme Court had ordered the lenders to invite fresh bids to revive Jaypee Infra and complete its housing projects in Noida and Greater Noida.

“We are fully supportive of the NCLT process,” home buyers representatives had told Moneycontrol, adding that with the process for resolution of JIL picking pace, the NCLT should deploy the Rs 750 crore collected by the Supreme Court for the benefit of home buyers for construction of apartments.

In August 10, 2017, the NCLT had admitted IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden company for defaulting on Rs 526-crore loan. Jaypee Infratech as a total debt of more than Rs 9,800 crores to an IDBI Bank-led consortium.

Source: https://www.cnbctv18.com/real-estate/jaypee-infratech-coc-to-meet-to-evaluate-expressions-of-interest-1512841.htm

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