Jaypee Infratech: Adani Group submits non-binding bid with upfront cash infusion

Photo: Graphics by Akash Mishra
Posted: May 29, 2019

Even though the state-run National Buildings Construction Company (NBCC) remained first choice of flat buyers in the insolvency resolution process of Jaypee Infratech, Adani Group has submitted a non-binding bid which includes upfront cash infusion of Rs 500 crore as first payment and also proposed other fund infusions of Rs 1,700 crore.

The offer is much higher than the one proposed by the NBCC. The offer proposed by Adani Group is also free of any conditions.

As per information, the upfront cash infusion of Rs 500 crore includes the total cost of Corporate Insolvency Resolution Process (CIRP), Rs 23 crore in payment to unsecured financial creditors and payment to employees.

“Now, it is up to the Committee of Creditors (CoC) to consider the bid as Adani Group has submitted it post the stipulated time.The next CoC meeting is proposed on May 30 after which the bid may be put to vote,” said a source privy to the matter. 

On the other hand, in its revised offer, NBCC proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.

Earlier, the National Company Law Appellate Tribunal (NCLAT) had annulled voting by home buyers and lenders on NBCC’s bid and allowed renegotiation on the offer by May 30. Voting process could start from May 31.

TAGS: Jaypee Infratech case / Adani Group bid for Jaypee Infratech / Insolvency proceedings of Jaypee Infratech / Jaypee group / Noida news on City Spidey / Noida news