The offer is not only higher than what had been offered by state-run NBCC but also comes sans conditions
New Delhi: Putting rest to speculations, Adani Group has finally entered the fray to acquire debt-ridden Jaypee Infratech by submitting a non-binding bid including an upfront cash payment of Rs 500 crore and other fund infusions of Rs 1,700 crore, sources said. The offer is not only higher than what had been offered by state-run NBCC but also comes sans conditions.
The upfront payment
The Rs 500 crore upfront payment offered by Adani Group includes the total cost of Corporate Insolvency Resolution Process (CIRP), Rs 23 crore in payment to unsecured financial creditors and payment to workmen.
What’s on offer?
For the unsecured financial creditors, Adani Group has offered a transfer of land parcel totalling 1,000 acres. As far as penalty/interest for possession delay is concerned, 25 percent of such amount will be paid to homebuyers, as accrued on August 9, 2017 on account of the delay. Also, if the NCLT or the Supreme Court approves, the Rs 750 crores deposited by Jaiprakash Associates for protection of homebuyers will also be utilised for the payment of balance penalties/interest.
Will CoC consider the bid?
As of now, it’s difficult to ascertain if the Committee of Creditors (CoC) will consider the bid submitted by Adani Group as it did not submit its bid in the stipulated time period. The CoC is set to meet on May 30, and the resolution plan is likely to be put to voting on May 31.