New Delhi: Lenders of bankrupt Jaypee Infratech rejected a Rs 7,350 crore bid by Lakshadweep, the highest bidder for the company, as they found it inadequate, multiple sources privy to the discussions said.
A panel of over a dozen lenders, who have to recover nearly Rs 9,800 crore from Jaypee Infratech Ltd met here over the last two days to decide on the bid received from Lakshadweep, whose offer was ranked higher than the presented by Adani Group.
Sources said 85 percent of the lenders voted against the offer while only 6.6 percent were in favour of accepting it and handing over the company to Lakshadweep -- a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.
Remaining 7.3 percent of lenders abstained from voting, they said.
Sources said the lenders did not consider a Rs 10,000 crore unsolicited offer made by promoters of Jaypee group for paying of debt and completing the unfinished housing project as the provisions of the bankruptcy and insolvency law, under which JAL is being auctioned, bar defaulting promoters from bidding.
Debt-ridden Jaypee Infratech 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 Ltd.
The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.
The tribunal had appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company's business.
Later, Jain invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.
Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech with Rs 7,350 crore bid.
IIFCL, another key lender to Jaypee Infratech, had earlier questioned the bid evaluation process followed by the resolution professional conducting the auction of the firm, saying it has "serious deficiencies and shortcomings".
Jaypee Infratech, which is a subsidiary of Jaypee group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 apartments. For giving possession of another 4,500 flats, it has applied for occupancy certificates.
The realty and infrastructure firm plans to deliver the remaining 18,000 flats by 2021. It needs Rs 6,500 crore to construct these flats, while Rs 4,000 crore is receivables from customers, leaving a shortfall of Rs 2,500 crore.
Jaypee Infratech currently has about Rs 24,000 crore worth assets, including land parcels, Yamuna Expressway and a hospital, sources had earlier said.
Jaypee group has already submitted Rs 750 crore in the registry of the Supreme Court.