Metals and mining giant Vedanta Ltd said it has submitted a preliminary expression of interest (EoI) for Jaypee Infratech currently undergoing the Insolvency Resolution Proceedings (IRP). The company has "submitted a preliminary non-binding Expression of Interest for submission of resolution plan of Jaypee Infratech Ltd under corporate insolvency process (CIRP)," Vedanta Ltd said in a BSE filing.
It, however, said that no negotiations have taken place on this with Jaypee Infratech Ltd. The statement comes amid reports that Vedanta is among the few players who have shown interest in buying Jaypee Infratech in full or in part.
The company further said, "the submission of EoI is in the normal courses of business and an indication of preliminary interest and does not constitute any offer to buy the asset."
The EoI invited by insolvency resolution professional (IRP) has received response from various entities, including corporates and asset reconstruction companies.
The National Company Law Tribunal (NCLT) has admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code. Moving ahead with the process, the NCLT-appointed IRP Anuj Jain on October 27 issued a public notice seeking applications from entities with regard to Jaypee Infratech. The last date for submission of EoI was November 7.
Jaypee Infratech has defaulted on Rs 526.11 crore outstanding loan to IDBI. The company, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. The company is developing more than 30,000 flats in Noida, most of which are incomplete. Home buyers have been protesting against significant delays in completion of the projects.
As per the public notice issued by IRP, the interested body corporates having minimum net worth of Rs 1,000 crore as well as investment companies and fund houses with minimum assets under management of at least Rs 1,000 crore will be eligible to put in their applications. Net worth, the total of share capital and free reserves, as on March 31, 2017, will be considered while deciding the eligibility of the applicants.
