Now, Jaypee Infratech ex-promoter offers to settle lenders’ dues

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With the NCLT asking lenders of DHFL to consider a settlement offer from its former promoter, Manoj Gaur, Executive Chairman of Jaiprakash Associates Ltd, has now written to the insolvency resolution professional at Jaypee Infratech Ltd offering a similar plan to pay dues in full.

 

Jaypee Infratech is undergoing a debt resolution process under the IBC rules and the CoC has already identified two potential bidders. Gaur has offered to pay ₹9,783 crore by way of upfront payment, land swap, and long term debentures with a total value of about ₹12,500 crore.

 

“I am not able to comprehend how and why the lenders have been unwilling to accept our proposal and are continuously putting resolution plans to vote which entails exorbitant haircuts. This is astonishing especially when the asset value of JIL is far greater than the debt owed to the creditors, partly due to the efforts by me and JAL to reduce such liabilities," Gaur said in the letter. This is similar to the proposal sent by Dheeraj Wadhwan, former promoter of DHFL. Wadhwan had also claimed that the lenders were not giving his offer due consideration before he filed a petition in the NCLT.

 

But legal experts said such proposals from former promoters of defaulting companies have no sanctity under the IBC rules. Recently, lenders allowed an offer by C Sivasankaran to retake control of his company by paying an amount higher than the liquidation amount. But in that case there were no bidders for his company.