Jaypee Infratech’s former promoter and Jaiprakash Associates Chairman, Manoj Gaur has urged the Interim Resolution Professional (IRP) and the Committee of Creditors (CoC) to consider his settlement offer.

Noting that the CoC is well aware of the offer made in July 2019 before the Supreme Court, Gaur said in a letter to IRP Anuj Jain, that his settlement plan would entail with no haircut and settle claims of all stakeholders.

“However, even then if any financial creditor is of the view that it provides for any haircut in any manner, we undertake that such shortfall (if any) will be made good from the operations of JIL within 5 years of acceptance,” he added.

As per Gaur’s offer, the settlement of secured financial creditors is proposed to be done by way of upfront payment, land swap and long terms debentures with a total value of around Rs 12,500 crore. The total liability of banks and financial institutions is Rs 9,783 crore.

He further said that deployment of funds for home construction shall be of Rs 1,650 crore, out of which Rs 400 crore shall be upfront.

The settlement plan also offers additional benefits including delay compensation as per terms of sale would be Rs 2,987 crore.

Gaur’s offer also assures repayment of FDs and outstanding dues of YEIDA in full.

Referring to the bids of NBCC and Suraksha ARC, he wrote: “Voting on a non-compliant plan of a resolution applicant and accepting haircut despite knowing the worth of assets of JIL and ignoring the offer of its promoters is not only imprudent but will set an extremely wrong precedent.”

In his letter dated May 23, marked to the members of the CoC, Gaur has requested the IRP to place the letter before the CoC for consideration and defer voting on the resolution plan, which was scheduled to start on Monday, May 24.

The voting on process on the resolution plan of Suraksha ARC, however, has been deferred by the CoC, till Friday, May 28.

The decision was taken by the committee in a meeting on Monday to discuss whether NBCC’s resolution plan should be considered. The voting on the Suraksha group’s bid was scheduled to start at 12 p.m. on Monday and go on till 5 p.m. on Thursday.

The CoC is now scheduled to meet on May 28 to decide on giving more time to both the resolution applicants — Suraksha, and the NBCC.

If more than 51 per cent of the CoC members decide on May 28 to take revised plans from both the applicants, then both applicants will get time to submit fresh applications till June 4, otherwise Suraksha’s plan will be put to vote on May 28.

Earlier on Monday, the NBCC wrote to the IRP and lenders including home buyers urging them to examine its resolution plan with “lot of objectivity and diligence and put it up for voting to CoC members”.

The state-run construction major also said that it reserves its “right to take recourse required, if any, before the appropriate forum of law as and when necessary”.

The CoC approved the Suraksha group’s bid on May 20 and rejected the NBCC’s bid citing non-compliance with the Insolvency and Bankruptcy Code (IBC).

The NBCC submitted an addendum after its bid was rejected.

According to people in the know, JIL’s IRP had submitted a report in the CoC meet, stating that the NBCC plan was non-compliant to the IBC.

The development came after the Supreme Court in April ordered submission of fresh plans by NBCC and Suraksha.

–IANS

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