Jaypee Infratech lenders may reject Lakshadweep’s offer
Jaypee Infratech’s lenders are likely to reject the proposal of Lakshadweep, promoted by people with ties to billionaire Dilip Shanghvi, to acquire the bankrupt company because of differences over valuation, several people familiar with the matter said.
More than half a dozen members of Jaypee Infratech’s committee of creditors (CoC), who together have a 40% share in its outstanding debt, have raised serious concerns over the valuation of the assets and the repayment structure proposed by Lakshadweep, they told ET.
As against the company’s liquidation value of between Rs 12,469 crore and Rs 14,798 crore as per the assessment by two independent valuers, Lakshdweep offered only Rs 7,350 crore, that too primarily through land swap or long-term non-convertible debentures. A very small portion will be paid upfront which will force the lenders to take a major haircut, said one of the people.