Saturday 28 October 2017

Jaypee Infra insolvency: IRP floats EoI for resolution plans :-

NEW DELHI: The interim resolution professional (IRP) appointed in the Jaypee Infratech insolvency case has invited companies, investment firms and fund houses with a net worth of over Rs 1,000 crore to complete the developer’s delayed projects, including Noida’s Wish Town, by infusing Rs 2,000 crore or more.

Entities able to take up the projects directly or through joint ventures and contractors should submit their proposals by November 7, Anuj Jain, the IRP appointed by the National Company Law Tribunal, said in an advertisement published on Friday.


Companies that take up the projects must ensure protection of the home buyers’ interests by timely construction and handover of the flats. They must submit their financial statements for the past three years, ownership details and proof of address with their applications.

Earlier this week, the Supreme Court denied permission to Jaiprakash Associates, the holding company of Jaypee Infratech, to sell the unit’s Yamuna Expressway to raise funds. However, the court extended the time for Jaiprakash Associates to deposit Rs 2,000 crore to pay aggrieved home buyers, as per its earlier order, from October 27 to November 5. The next hearing in the case is on November 13.

Abhishek Dubey, a New Delhi-based lawyer and a Jaypee Greens flat buyer, said it will be tough for a real estate company to undertake this mammoth exercise considering the protracted litigation under way in the Supreme Court, consumer courts and NCLT. Most importantly, he said, there is a lack of sufficient unencumbered assets with Jaypee that an incoming interested party can sell to raise funds for construction of flats. “Also, will the incoming investor make any profits is a big question to be answered , he said.

About 32,000 home buyers were left in the lurch after the Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on August 9 on a petition filed by IDBI Bank under the Insolvency and Bankruptcy Code 2016. Jaypee had defaulted on a Rs 526 crore loan by the bank.

The builder informed the Supreme Court that it wants to sell the Yamuna Expressway to generate money and has an offer in hand for Rs 2,500 crore. However, its proposal was opposed by the Attorney General KK Venugopal, IDBI Bank, the Yamuna Expressway Industrial Development Authority and the IRP. The 165-km, 6-lane expressway connects Agra and the National Capital Region.

Wednesday 18 October 2017

Jaypee Homebuyers Finally Get Possession Letters

TIMES NEWS NETWORK


Nearly 1,150 homebuyers in Jaypee Wish Town and Kosmos have received possession letters over the last twoand-a-half months when Jaypee Infratech was admitted for insolvency by the National Company Law Tribunal.Company sources said that during August and September, around 950 possession letters were offered, while another 200 letters have been handed over so far this month. The expectation is that the current pace of construction will be maintained and another 2,300 apartments in Wish Town will be handed over by December 2017.
Although the insolvency resolution professional has been running the operations, most of the apartments were close to completion before IDBI Bank moved the insolvency tribunal following instructions from the Reserve Bank of India.
With the current round of possession letters and 1,700 residential plots and town houses handed over around 7,700 residential units have been offered for possession. Jaypee Infratech had committed to build around 32,000 units across its 27 projects. While some of the projects were launched close to a decade ago, based on the current time lines, possession is to be completed by March 2021.
The insolvency resolution professional appointed by NCLT is trying to complete construction and also advance the delivery schedule, for which it has estimated that additional Rs 2,000 crore would be required. While the IRP and committee of creditors had planned to rope in investors to raise the funds, Jaypee has told the Supreme Court about plans to raise around Rs 2,500 crore from Yamuna Expressway .
Sources said that Jaypee promoters are in dialogue with Cube Highways, backed by a Singapore fund, and IFC, the World Bank's private sector investment arm, for a possible securitisation deal.
Cube Highways, which is credited with turning around some of the highway projects in India, had earlier proposed a 20 year securitisation deal, which IDBI Bank had virtually blocked.
While Cube Highways executives did not responded to messages, in response to a questionnaire, a Jaypee spokesperson said: “Since the matter is sub-judice in SC, please allow us to refrain from giving any responses at this stage.“