In order to regain control over the bankrupt Jaypee Infratech (JIL), former promoter Manoj Gaur has proposed to eliminate dues worth Rs. 8,358 crores out of Rs. 9,783 crores financial creditors admitted bill. The proposal which was submitted on February 15, does not include the interest component of Rs 1,425 crore, on which a waiver has been sought.
Gaur’s proposal also promises to pay fixed-deposit holders within 90 days of the approval of the offer of settlement. According to section 12 A of the Insolvency and Bankruptcy Code (IBC), the insolvency case could be withdrawn if 90% of the lenders vote in favour of the latest offer.
According to the reports, Rs. 1,500 crores of upfront payment will be made by Gaur to the financial creditors and whereas Rs. 2,000 crores of payment will be made on a later date after raising the amount through convertible debentures.
Jaypee Infratech, which according to its largest lender IDBI bank has an actual value Rs. 17,111 crores, currently owe Rs. 9,000 crores in outstanding to various banks. The lender of JIL has previously rejected the Rs. 7,350 crores bid by Suraksha ARC, which had emerged as the front-runner to acquire JIL in May 2018, as the lenders found it too low.