NARCL: NARCL offers Rs 3,500 cr to take over Jaypee Infrastructure debt – Blue Barrows

Mumbai: The state-backed National Asset Reconstruction Company Ltd (NARCL) has offered ₹3,500 crore to take over the debt of Jaypee Infrastructure in what is the largest account for which the bad bank has placed a bid to date.

The amount was conveyed to lenders at a meeting on Monday. Lenders will now individually evaluate the plan and come back to the NARCL for feedback.

“The offer has been put forward to the lead bank, in this case IDBI Bank, which will now call a joint lenders meeting (JLM) to discuss it with other banks. It depends on what feedback banks give now,” said a person aware of the offer.

, a real estate and infrastructure company, was among the initial 12 companies the Reserve Bank of India (RBI) had referred to the National Company Law Tribunal (NCLT) in August 2017 under the Insolvency and Bankruptcy Code (IBC).

It owes banks led by IDBI Bank a total of ₹22,600 crore. Lenders have been in the process of finding a buyer for the company for four years and have already approved a plan submitted by Suraksha Realty which entails a recovery of ₹7,936 crore, a haircut of 65%. The offer by NARCL is lower than the one offered by Suraksha but lenders will also take into account the lack of certainty in the much delayed plan.

“It will be compared with the plan already on the table because there are litigations around the plan and no certainty on when the recovery will be completed. Lenders could choose to take the money on offer now rather than wait for it to fruitify,” said a second person aware of the details.

The process is that NARCL will now provide a binding offer to lenders following which the lead bank after taking an approval from others in the consortium will conduct a Swiss challenge allowing challengers to the NARCL bid. If some counter offer does come up then NARCL will have the right to match it.

“Things are still at an early stage and it is fair to assume that we won’t see anything finalised in the next one month. We will also see more offers for other accounts in the meantime,” the first person said.

The NARCL plans to buy 18 distressed accounts with loans outstanding of close to ₹39,921 crore by October 31, ET reported on Monday.