NCLT decalred Japypee Infratech insolvent.
Bidding open:
For real estate companies and other companies.
Net worth should be INR 1000 crores.
Infuse INR 2000 crores to finish projects such as Jaypee Wish Town.
Dosti Suraksha is the highest bidder with INR 7350 crores
Jaypee Infratech’s timeline:
April 2007: incorporation
December 2007: Commenced construction of Yamuna Expressway
2008–2010: Launched five residential projects in Noida
October 2009: Commenced constructing Jaypee hospital
October 2011: Inaugurated Buddha International Circuit for Formula 1 races.
October 2012: Yamuna expressway inaugurated
October 2017: Bankruptcy proceedings for Jaypee Infratech.
What went wrong?
Debts kept mounting to INR 75,000 crores by the parent company.
It had uneven cash flow, due to downturn in the economy after 2008, and wasteful projects such as Formula 1.
It failed to deliver to 32,000 homebuyers in Noida.
They sold their core assets and revenue generators to decrease debt.
Now what?
Manoj Gaur aims to bring down the debt to INR 6000 crores. Current debt levels are INR 30,000 crore.
Jaypee will sell its cement business.
It will sell the land bank of 1000 acres. It’s worth INR 13000 crores.
Its lenders have agreed to clear the rest of the debt in the next 20 years.
Read more:
Story of Jaypee’s downfall.
Detailed view of its debt.
Jaypee’s story is the story of Indian real state’s boom and bust.
Update 01: Promoters present a revival plan for Jaypee Infratech
Manoj Gaur offered a new plan.
Haircut of INR 200 crore vs Dosti Suraksha’s INR 2800 haircut.
Promises to deliver flats by 2021. Dosti- Suraksha will deliver by 2024.
Deposited INR 700 crore with the Supreme Court to compensate homebuyers.
More here.