NBCC, in a letter to Jaypee Infratech (JIL) Creditors Committee (CoC) Wednesday, said the fair market value (FMV) of Yamuna Expressway is greater than the projected liquidation value.
The state-owned company pointed out that willing financial creditors (AFCs) can realize up to Rs 4,000 crore for the 90% stake in the SPV e-way offered to them as part of the resolution process of the l ‘insolvency.
JIL’s CoC is meeting on Thursday, June 10 to deliberate on the revised resolution plans of NBCC and the consortium led by Suraksha Realty as well as to decide on the voting process for the acquisition of the bankrupt real estate developer.
Sources said the panel of lenders sought clarification from the NBCC on Monday (June 7) on the rationale for its offer to AFCs and Dissenting Financial Creditors (DFCs). The PSU responded that according to the letter from the Interim Resolution Professional (IRP) last month, the liquidation value (LV) of Yamuna Expressway is Rs 3,458 crore.
“The NBCC pointed out that the JVM of the Yamuna Expressway is estimated to be higher based on the Dun & Bradstreet traffic survey report of June 2019. It also attributed the higher value to the development of the international airport. from Jewar, to the future city of toys and cinema and to the growth of industrial and commercial activity in the surrounding areas. He believes that lenders can realize Rs 3,500-4,000 crore for their 90% stake in the highway, ”one of the sources added.
The company said it will create a separate special-purpose vehicle (SPV) for the highway with operational debt settlement upon approval of its offer, he said.
In its revised offer submitted on June 4, the NBCC proposed to transfer 90% of the capital of the Expressway SPV, including the concession rights for the Yamuna Expressway and the land, to the AFCs. plots identified for DFC security enforcement, the total allowable IFC claim is Rs 9,783 crore.
“The NBCC said the May 17 IRP letter put the 1,903 acre LV at Rs 3,133 crore. However, the land monetization would reach a higher value of about 40-50% than the LV. , of the order of Rs 4,400 to 4,700 crore, over a period of time. This is due to Jewar International Airport, Cinema City, Toy City, and various other business ventures. Values are based on NBCC assessment, ”the source added.
This is the fourth round of the tender process in the JIL bankruptcy case. The company began insolvency proceedings in August 2017 after the National Company Law Tribunal (NCLT) granted a claim from a consortium led by IDBI Bank.