This is because the government-promoted National Asset Reconstruction Company (NARCL) has offered to acquire only those loans of
that the public sector banks hold.
Homebuyers, fixed deposit holders and private banks constitute 62% of the admitted claims against the distressed real estate developer.
NARCL’s ₹3,570-crore offer for the ₹9,234 crore debt held by nine public sector lenders has triggered a Swiss challenge auction. Lenders led by have invited expressions of interest on October 10 and scheduled an auction on October 27, according to a bid document circulated to ARCs. NARCL will have the right to match the winning bid and take over the debt.
Anuj Jain, the interim resolution professional (IRP) of Jaypee Infratech, filed the resolution plan of Suraksha Group to the tribunal for approval in July 2021. Since then, the tribunal has rescheduled the hearing of the matter about 80 times, as per the stock exchange filings.
“The judicial delay of over a year to get the plan approved indicates the plight of homebuyers who have already waited for over 10 years to get possession of their homes,” a real estate consultant said.
NARCL did not respond to ET’s query.
The admitted claims of homebuyers and fixed deposit holders are ₹14,428 crore, while those of private lenders
, and Srei Equipment Finance are ₹549 crore.
NARCL’s offer would imply a 39% recovery for lenders. The IRP has admitted claims of ₹24,211 crore, and NARCL’s offer would equate to ₹9,345 crore if the same offer of 39% recovery is made to all claimants.
Lenders said the NARCL offer is attractive compared to the winning bidder. “We will receive 15% of the consideration amount upfront, and we will not have to wait until the court approves the plan,” a lender said.
ET had first reported on September 20 that NARCL has given a binding offer for Jaypee Infratech.
Suraksha Group has offered to swap a land parcel of 2,552 acres valued at ₹6,450 crore with lenders, pay ₹1,280 crore in 10 instalments, and ₹29 crore to fixed deposit holders. Most importantly, it has agreed to complete the construction of unfinished houses and hand over the possession to homebuyers.
In the Swiss challenge auction, the lenders have stipulated that the counterbid should have a markup of at least 5%, equating to ₹178.5 crore over the anchor offer of ₹3,570 crore. The challenger bid can be in cash or a combination of cash and security receipts (SRs).
However, the SRs will have to be guaranteed by a ‘first class bank’, as per the offer document that has not defined ‘first class bank’.
NARCL aims to acquire at least eight accounts by the end of this month.