ET: Leelaventure announces new dates for shareholder voting on Brookfield deal

13 August 2019: While declaring its results for the quarter ended June, Hotel Leelaventure said it was seeking fresh approval of the shareholders by postal ballot for its sale of assets to Brookfield. Leelaventure said voting will begin on August 18 and will end on September 16. The company said it will declare the results of the postal ballot September 18.

Last month, Sebi had asked Hotel Leelaventure to put to vote afresh the asset sale transaction of the company before the shareholders besides providing additional disclosures in its postal ballot notice for asset sales to Brookfield like details of valuation of both the asset sale transaction and additional intellectual property transaction including the methods adopted by the company.

Tobacco-to-hotels conglomerate ITC had challenged the transaction in the dedicated bankruptcy court, National Company Law Tribunal (NCLT) in April, claiming mismanagement and oppression of minority shareholders and had also complained to Sebi.

In March this year, Leela Venture announced that Canadian alternative asset management company Brookfield had agreed to purchase its key hotel properties in Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore.

The company reported a loss of Rs 7.52 crore for the quarter under review, compared to a loss of Rs 66.69 crore in the corresponding period of the previous fiscal.

Leelaventure reported a total income of Rs 329.4 crore down from Rs 359.5 crore in quarter ended June 30, 2018.

Referring to the proposed asset sale to Brookfield, the company’s auditors said if the interest and other finance costs notified by the asset reconstruction companies were provided in the books of accounts, the loss for the quarter would have been higher by Rs 234 crore. The auditors also said relating to enhancement in rentals, unilateral termination of lease of the Mumbai hotel and initiated eviction proceedings which the company is legally contesting, the disputed amount not provided in the books for the quarter ended June 30 was Rs 3.52 crore. The notes further added that related to the demands made by Airports Authority of India relating to rent, minimum guarantee fee in respect of the lease of 11,000 square meters of land in Mumbai cumulatively amounting to Rs 807 crore upto January 31, 2019 is not provided as the liability is disputed and not crystalised as per the legal opinion.

The Economic Times reported

MC: SEBI directs Hotel Leela to make additional disclosures to shareholders on asset sale

23 July 2019: Markets regulator Sebi on July 23 directed Hotel Leela Venture Ltd to make additional disclosures to its shareholders on sale of assets. Besides, the watchdog would initiate adjudication proceedings against JM Financial Asset Reconstruction Company (JMF ARC) for failing to comply with provisions of takeover norms.

The ruling has come on complaints received from minority shareholders of Hotel Leela alleging violations in relation to postal ballot notice, dated March 18, wherein the company had sought approvals regarding sale of assets to Brookfield.

At the end of June, JMF ARC owned 26 per cent stake in Hotel Leela.

The regulator had received ITC and LIC — minority shareholders in Hotel Leela — alleging violations by promoters and JMF ARC in respect of asset sale transaction mentioned in the postal ballot notice.

In its order, Sebi said Hotel Leela should provide various additional disclosures in the postal ballot notice, including all relevant details of each of the sale transactions.

Details of valuation of both asset sale transaction and additional IP transaction, including the methods adopted by the company, should also be disclosed.

During the course of the postal ballot, the valuation reports shall be kept for inspection by the shareholders of Hotel Leela, it added.

“Sebi may initiate adjudication proceedings under the Sebi Act against JMF ARC for its failure to ensure compliance with the applicable provisions of the Takeover Regulations, as deemed fit and appropriate,” the order said.

Moneycontrol reported

ET: Of Leelaventure’s total debt of Rs 7,500 crore, HDFC had advanced about Rs 826 crore.

8 June 2019: Stakeholders in debt-laden Hotel Leelaventure are apprehensive that a deal to sell company assets to Brookfield may go the way of Jet Airways after the market regulator stalled the transaction.

The Securities and Exchange Board of India, which acted on complaints by minority investors ITC and Life Insurance Corporation of India, has yet to take a decision on the matter.

“I don’t know what the objection of the shareholder (ITC) to this is, other than the fact that they are in the same business,” Keki Mistry, vice-chairman of Housing Development Finance Corporation, one of the lenders to Leelaventure, told ET. “In any merger, there will be some shareholders who will object and here the shareholder is actually a competitor. I am sure Sebi will look at that as well.”

Of Leelaventure’s total debt of Rs 7,500 crore, HDFC had advanced about Rs 826 crore.

The stakeholders are concerned that delays in completing the deal would dissuade investors and dilute brand equity much like Jet Airways. The debt-laden airline was grounded and has failed to find investors.

Tobacco-to-hotels conglomerate ITC, which holds a 7.92 per cent stake in Leelaventure, challenged the transaction in the National Company Law Tribunal (NCLT) in April, claiming mismanagement and oppression of minority shareholders.

After ITC approached Sebi, the market regulator asked both parties to wait till it examines the complaints. LIC, India’s largest life insurer, holds a 2.38 per cent stake in Leelaventure.

“The shareholders of Leela, both in numbers and value, have… approved the transaction. It is important that the deal gets cleared at the earliest,” Mistry said.

Almost 86 per cent of all shareholders in a postal ballot voted in favour of the deal and over 70 per cent of the institutional and non-institutional shareholders supported it.

Emails to Leelaventure and ITC went unanswered till the time of going to press. Brookfield declined to comment.

Leelaventure announced in March that Canadian alternative asset management company Brookfield had agreed to purchase its key hotel properties in New Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore in a slump sale. The promoters and their affiliates would also get consideration of Rs 300 crore for any asset-related intellectual property rights they hold and for business expansion services that they provide to the investor.

“The pause by Sebi on the country’s largest hotel acquisition transaction of Leela’s hotels does not augur well for the positive sentiment that has built up for hospitality transactions,” said Mandeep Lamba, president, South Asia, at HVS Anarock, a consultancy firm.

Hotel transaction volumes were expected to cross $800 million in 2019, the highest ever for the Indian hospitality sector, following the deal announcement, HVS Anarock had said.

“This defeats the very purpose of the NCLT disposition of nonperforming assets, where timebound completion of asset sales is the key component towards resolution,” he said.

ITC failed to get immediate relief from the NCLT in April after the tribunal cited a Companies Act provision that requires entities to own at least 10 per cent of the issued share capital to file such petitions.

All parties including JM Financial ARC, which holds a 26 per cent stake in the company after the conversion of debt into equity, were given time to reply and the next NCLT hearing on the matter is scheduled on June 18.

ITC had made an offer to lender JM Financial ARC, which holds most of Leela’s debt, for Leelaventure’s assets and if Brookfield walks away, the value of those properties would slide because the next best offer for the assets was Rs 3,000 crore, people familiar with the matter said.

“Selling Hotel Leelaventure’s properties in a fractional manner as against the entire company is unlikely to fetch value and can prove to be value destructive for shareholders as well as lenders,” a lender said.

All stakeholders that ET contacted are concerned over hurdles in the way of closing the deal.

“The transaction will help resolve the debt issue, protect shareholder value, protect jobs and most importantly, bring in foreign investment. When was the last time we have seen foreign direct investment in the Indian hospitality sectors ” asked an investor, who spoke on condition of anonymity.

The investor said most hospitality deals are brand and management contracts that take money out of India and in contrast, this transaction would bring in Rs 3,950 crore, which is just the initial investment.

The Economic Times reported

BS: NCLT asks Sebi to conclude probe into ITC, LIC allegations against Leela

28 May 2019: The National Company Law Tribunal (NCLT) Tuesday directed market regulator Sebi to conclude its probe into allegations against Hotel Leelaventure by the company’s two minority shareholders ITC and LIC.

The NCLT’s Mumbai bench comprising V P Singh and Ravikumar Duraisamy said the regulator should conclude its examination on the matter before the next date of hearing, on July 8.

Earlier in April, ITC had sought a waiver of the 10 per cent minimum shareholding requirement to file a petition alleging oppression and mismanagement against the hotel management and its lender JM Financial ARC and also to prevent the premium hotel chain from going ahead with the ongoing sale to Canadian fund house Brookfield for Rs 3,950 crore that was announced in March.

“We were suppressed of our rights as a shareholder. The postal ballot notice has not addressed many issues. It is a classic case of majority acting against minority shareholders using oppressive means, as they own 73 per cent.

“We want protection for our shareholding so that the promoters cannot get away with a fraudulent deal,” the ITC counsel had told the tribunal.

He noted that in 2017, JM Financial ARC bought the debt of Hotel Leela from banks and got 26 per cent shareholding after converting the debt into equity. This led to the dilution of ITC’s shareholding to below 10 per cent, J Khambatta argued.

As per the information available with the bourses, ITC holds 7.92 per cent stake in Hotel Leelaventure as of the December 2018 quarter.

Under Section 241 of the Companies Act, 2013, a minimum shareholding of 10 per cent is required to file such cases.

The tribunal had issued notices JM Financial and Hotel Leelaventure to reply within three weeks and file rejoinders in two weeks thereafter.

ITC said all major hotels of Hotel Leelaventure are being sold off excluding the flagship Mumbai property, which is facing a legal battle with the Airports Authority over land lease, and also a land parcel in Hyderabad, which the hotel group is developing with Prestige Developers.

Under the deal with Brookfield, the Leela promoters will get over Rs 300 crore from the buyer under royalty and management consultancy agreements for the next five years.

“We are seeking deal details or the valuation report but the company is not co-operating,” the ITC counsel had added.

The Securities and Exchange Board in a letter to Hotel Leelaventure had said it has received representations from ITC apart from Life Insurance Corporation.

Earlier on March 18, Brookfield had agreed to acquire four hotels in New Delhi, Chennai, Bengaluru and Udaipur, and a land parcel in Agra from Hotel Leelaventure for Rs 3,950 crore. The deal is yet to go through. The flagship Mumbai property is not part of the deal and together these five hotels have over 1,400 rooms.

JM Financial ARC had filed insolvency application against the Mumbai-based hotel chain in January, which owes around Rs 5,900 crore to lenders.

The Brookfield-Leela deal will also entail buying the Leela brand, existing and all its upcoming management contracts apart from absorbing the employees of these four hotels being taken over by the Canadian fund.

The Business Standard reported

CNBCtv18: Centre pays sovereign guarantees to ADB, KfW for IL&FS

3 April 2019: In a major development in the IL&FS crisis, the government has of late paid up on sovereign guarantees to Asian Development Bank (ADB) and KfW, a state-run bank of Germany, people in the know of the developments said.

Payment of around $2 million or Rs 13.84 crore has been made to ADB at the least in the last couple of months and around Rs 5 crore has been paid to KfW, sources said.

Significantly, the payment has not been disclosed at the National Company Law Appellate Tribunal (NCLAT) even though the appellate tribunal has asked both the government and the IL&FS board to take its approval before any step regarding the cash strapped group.

It has come to light that in 2009, the government of India had issued a sovereign guarantee on behalf of Infrastructure Leasing & Financial Services (IL&FS).

The Finance Ministry declined to comment on the IL&FS related queries while ADB did not respond to information sought by IANS. IL&FS also declined to comment on the matter.

In the legal developments, the NCLAT on March 29 told the board of the cash-strapped IL&FS to submit details of the group’s dues. The matter would be next heard on April 8.

The Delhi-based appellate tribunal also said that there would be no stay on the government’s resolution plan for the companies of IL&FS. However, all steps regarding the resolution of the group companies would have to be cleared by the appellate tribunal, it added.

The crisis in the infrastructure lending company came to light when it defaulted on its commercial papers in Septemeber in 2018.

Last year, the central government superseded the management of the beleaguered company through a National Company Law Tribunal (NCLT) order and appointed a six-member board led by Uday Kotak, MD and CEO of Kotak Mahindra Bank, to restore its financial solvency.

Key public sector lenders and undertakings, such as the Life Insurance Corporation of India (LIC) and the State Bank of India (SBI), have a 25.34 per cent and 6.42 per cent stake, respectively, in the firm which has around Rs 91,000 crore in long-term debt.

CNBCTV18 reported

BS: Inter-Creditor pact a non-starter: Debtors to SC

30 March 2019: Corporates opposing the RBI’s February 12 circular on loans resolutions have submitted to the Supreme Court that the Inter-Creditor Agreement (ICA) among banks as a possible debt resolution framework has failed to take off as the relevant institutions like LIC, HUDCO, IFCI, IIFCL, NIACL, SIDBI, GIC are not signatory to it.

The companies have slammed the slow progress of the inter-creditor arrangement among the banks saying it is a non-starter due to the absence of relevant members even though the Reserve Bank of India (RBI) has endorsed its utility. 

The ICA is seen as helping the debt defaulters to avoid bankruptcy proceedings and a possible debt resolution mechanism.

The ICA is a non-starter because 49 out of 85 lenders (that is 58 per cent) have so far not signed the agreement even after the expiry of eight months, and 10 of the non signatories are government-owned financial institutions and major lenders in the Infrastructure sector — LIC, HUDCO, IFCI, IIFCL, NIACL, SIDBI, GIC, the pleaders’ their submission stated.

“None of the Non Banking Financial Companies/Asset Reconstruction Companies (NBFCs/ARCs) are party to the ICA, without whom the agreement mechanism will not be effective,” the companies further added.

The petitioners said: “In its written submission, the RBI has endorsed the ICA as a possible debt resolution mechanism in its submissions to the Supreme Court, since it is aimed at helping debt defaulters to avoid bankruptcy proceedings and requires only 66 per cent approval of lenders.”

Indian banks, who are trying to sell their troubled assets are part of the ICA.

A group of banks, including public sector, private sector and foreign banks, signed an inter-creditor agreement in 2018 to push for the speedy resolution of non-performing loans on their balance sheets as per which a majority representing two-thirds of the loans within a consortium of lenders should now be sufficient to override any objection to the resolution process coming from dissenting lenders. 

Under ICA, minority lenders who suspect they are being short-changed by other lenders can now either sell their assets at a discount to a willing buyer or buy out loans from other lenders at a premium. 

The inter-creditor agreement is aimed at the resolution of loan accounts with a size of Rs 50 crore, anything above that are under the control of a group of lenders. 

It is part of the broader “Sashakt” plan approved by the government to address the problem of resolving bad loans. 

ICA Chairman Sunil Mehta is of the opinion that disagreement between joint lenders is the biggest problem in resolving stressed assets. Many debters and lenders believe that the holdout problem, where the objections of a few lenders prevent a settlement between the majority lenders, will be solved through the inter-creditor agreement.

Such an agreement may persuade banks to embark more quickly on a resolution plan for stressed assets. This is an improvement on the earlier model, which relied solely on the joint lenders’ forum to arrive at a consensus among creditors. 

However, the companies approaching Supreme Court against the February 12 Circular on loan resolutions said this alternate mechanism is not taking off.

Indian banks have been forced by the RBI to recognise troubled assets on their books, but their resolution has remained a challenge. 

Supreme Court has heard a bunch of petitions across the sectors — Power, Ship-building, Sugar, Telecom — opposing the RBI’s February circular. 

A two-judge bench of Justice Rohinton Fali Nariman and Justice Vineet Saran is hearing a bunch of petitions moved by power, sugar, and ship- building companies challenging the RBI’s circular. 

On February 12, 2018, the RBI had asked banks and other lenders to either execute a resolution plan for big stressed accounts or file insolvency petitions against them in the National Company Law Tribunal (NCLT).

The Business Standard reported

BT: Jaypee Infratech lenders ask NBCC, Suraksha Group to sweeten takeover bids

14 March 2019: Lenders of debt-ridden Jaypee Infratech on Thursday asked state-owned NBCC Ltd and Suraksha Group to sweeten their offers for acquiring the bankruptcy-bound realty firm, sources said.

NBCC, which has the backing of the government to takeover Jaypee Infratech, is unlikely to increase the offer of Rs 500 crore capital infusion but is ready to help lenders in monetisation of the Yamuna Expressway and the land offered by the PSU in its resolution plan, they said.

In a meeting with lenders, the state-owned firm even proposed that it was ready to work as project management consultant and charge fees for completing the stalled projects, while lenders could keep control of Jaypee Infratech, the sources said.

A meeting of the Committee of Creditors (CoC) was held to discuss resolution plans submitted by NBCC and Suraksha Group. The CoC will soon formally write to both the bidders to submit revised bids based on the discussions held.

In the meeting, NBCC submitted that the company would complete and deliver stalled projects to homebuyers in three years instead of the earlier promise of four to five years, sources said.

In its resolution plan submitted last month, NBCC offered 1,400 acre land worth Rs 6,000 crore as well as Yamuna Expressway to lenders.

It proposed that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 crore) to the state-owned company, which would utilise the fund as an upfront payment.

NBCC has offered to fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.

In contrast, Suraksha Group made an offer of about Rs 20 crore as an upfront payment and land worth Rs 5,000 crore, sources said. The Mumbai-based group promised to complete the pending projects in three years.

The National Company Law Tribunal (NCLT) in 2017 admitted the application of a consortium led by IDBI Bank seeking resolution of Jaypee Infratech under the insolvency law.

Anuj Jain as the Insolvency Resolution Professional (IRP) to manage the company’s business and invite bids from investors.

In the first attempt under the insolvency process, lenders had rejected the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group, as they found it to be substantially lower than the company’s net worth and assets.

Therefore, the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech on the NCLT’s direction.

Sources had earlier said the settlement proposal of promoter Jaypee group would not be taken up in the CoC meet but lenders could deliberate on it separately.

For the second time in less than a year, Jaiprakash Associates Ltd (JAL) has sought to retain control of its cash-strapped subsidiary. The latest offer is almost similar to what JAL offered last year to the lenders and homebuyers.

In April last year, JAL made an unsolicited offer of about Rs 10,000 crore to settle the dues of Jaypee Infratech. It had offered 2,000 equity shares each to the buyers.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 units. JAL had deposited Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to the NCLT as per an order of the apex court.

Business Today reported

 

 

 

ET: Jaypee infra lenders seek clarity from NBCC on acquisition bid

2 March 2019: Lenders of crisis-hit realty developer Jaypee Infratech, in a meeting held on Friday, sought clarity from state-run NBCC on certain legalities and on its bid to acquire the company. NBCC is expected to respond to these queries and observations in a week’s time, said two persons with direct knowledge of the development. 

“Committee of Creditors (CoC) made certain observations and sought clarifications from NBCC on certain legalities and the bid. The committee was keen to understand NBCC’s model for the proposal and was also asked if it can complete the projects in less than five years,” said one of the persons mentioned above. The meeting lasted for almost 90 minutes. 

State-run NBCC and Suraksha Asset Reconstruction Company have bid and are in race to acquire Jaypee Infratech under the Insolvency Resolution Process. 

However, it could not be ascertained if the other bidder Suraksha Asset Reconstruction Company too was called for the meeting today. NBCC declined to comment for the story. 

Jaiprakash Associates, promoter of the stressed realty developer, has also submitted a proposal to lenders of its subsidiary to settle their dues. Both the bidders have already made presentations to the Committee of Creditors (CoC) two weeks ago. Lenders are likely to hold more meetings with the bidders before taking a final call. 

The company has an outstanding debt of about Rs 9,800 crore. Its lenders include IDBI, IIFCL, Axis Bank, Bank Of Maharashtra, Corporation Bank, ICICI Bank, IFCI, J&K Bank, LIC, SBI, Syndicate Bank, Srei Equipment Finance, and Union Bank. 

About 32,000 home buyers were left in the lurch after the Allahabad bench of the NCLT on August 9 classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of IBC, 2016. Jaypee had defaulted on a Rs 526-crore loan by the bank. 

In 2017, the NCLT admitted the application of an IDBI Bank-led consortium seeking resolution of Jaypee Infratech’s debt under the Insolvency and Bankruptcy Code. Lakshadweep, which is part of the Suraksha Group, subsequently emerged as the frontrunner to acquire the firm. However, in May last year, lenders rejected its Rs 7,350-crore bid, as they found it to be inadequate. On the National Company Law Tribunal‘s direction, Jain started a fresh initiative in October 2018 to revive the company that has several stuck housing projects in Noida and Greater Noida. 

A subsidiary of Jaypee Group flagship firm Jaiprakash Associates, Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 units.

The Economic Times reported

BS: Jaypee Infratech’s lenders to discuss NBCC, Suraksha takeover bids Friday

28 February 2019: Financial creditors and home buyers of Jaypee Infratech will meet Friday to discuss the bids submitted by state-owned NBCC and Mumbai-based Suraksha group to take over the bankruptcy-bound realty firm and complete stalled projects comprising over 20,000 housing units.

A meeting of the Committee of Creditors (CoC) will be held on March 1, said Anuj Jain, the Insolvency Resolution Professional (IRP) of Jaypee Infratech, in a regulatory filing.

In a separate filing, Jain said the lenders have rejected a resolution to “conduct the addition forensic audit of corporate debtor (Jaypee Infratech) from Date of Incorporation till March 2014″ after voting process.

The filing did not disclose the agenda of Friday’s meeting, but sources said it has been called to further discuss the resolution plans submitted by NBCC and Suraksha group.

Sources said the settlement proposal of promoter Jaypee group will not be discussed in the CoC meet, but lenders could deliberate on it separately.

In the last meeting on February 18, NBCC and Suraksha made presentations before the CoC. Jaypee group promoters were also present at the meeting.

Jaypee group’s flagship firm Jaiprakash Associates Ltd (JAL) has once again submitted a proposal to the lenders of its subsidiary firm Jaypee Infratech for settling dues worth Rs 10,000 crore.

This is the second time in less than a year that JAL has sought to retain control of its cash-strapped subsidiary. The latest offer is almost similar to what JAL offered last year to lenders and home buyers.

In April last year, JAL had made an unsolicited offer of about Rs 10,000 crore to settle the dues of Jaypee Infratech. It had also offered 2,000 equity shares each to buyers.

The National Company Law Tribunal (NCLT) in 2017 had admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech and appointed Jain as IRP to manage the company’s business and invite bids from investors.

In the first attempt to complete the insolvency process, lenders had rejected the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, as it found it to be substantially lower than the company’s net worth and assets.

Therefore, the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech on the NCLT’s direction.

In this round, NBCC has promised to deliver flats to home buyers in four years. It has also offered 1,400 acre land worth Rs 6,000 crore as well as Yamuna Expressway highway to lenders.

NBCC has suggested that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 crore) to the PSU, which will utilise this fund as an upfront payment. NBCC will also fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.

In contrast, Suraksha group has made an offer of about Rs 20 crore as upfront payment and land worth Rs 5,000 crore, sources said. The Mumbai-based group has promised to complete pending projects in three years.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 units. JAL had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to NCLT as per an order of the apex court.

The Business Standard reported

BQ: NBCC, Suraksha Bid To Acquire Bankruptcy-Bound Jaypee Infratech

15 February 2019: State-owned NBCC (India) Ltd. and Mumbai-based Suraksha Group have submitted bids to take over bankruptcy-bound Jaypee Infratech and complete stalled housing projects in Noida, sources said. The value of the bids could not be immediately ascertained. NBCC Chairman and Managing Director Anoop Kumar Mittal said the company is “keen to acquire” Jaypee Infratech and complete over 20,000 pending housing units.

Mittal declined to share the bid value but said the resolution plan submitted by the company is beneficial for all stakeholders, including banks, homebuyers and NBCC.

NBCC, in an exchange filing, said it has submitted the bid to interim resolution professional Anuj Jain.

Jain, who is carrying out the insolvency process, had earlier shortlisted four players— NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha Group—to submit their resolution plans by Feb. 15.

Kotak Investment and Cube Highways have not submitted bids, sources said.

A meeting of the committee of creditors will be held on Feb. 18 to discuss bids.

In October 2018, Jain started a fresh initiative to revive Jaypee Infratech on the National Company Law Tribunal’s direction after lenders rejected the over Rs 7,000-crore bid of Suraksha Group.

He invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.

In 2017, the National Company Law Tribunal had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code. The tribunal had appointed Jain as interim resolution professional to manage the company’s business and invite bids from investors.

Consequently, Lakshdeep, part of Suraksha group, had emerged as the front runner to acquire the firm. However, in May last year, lenders rejected the Rs 7,350-crore bid by Lakshdeep as they found the amount to be inadequate.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech, a subsidiary of Jaypee Group’s flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units. J

aiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to the NCLT as per an order of the apex court.

Bloomberg Quint reported