Lenders to Jaypee Infratech take control of more land parcels

Mumbai: Lenders to Jaypee Infratech Ltd have taken control of additional parcels of land along the Yamuna Expressway, said two people familiar with the developments, on condition of anonymity.

In January, the company had transferred ownership of 250 acres. This week, the ownership of additional parcels of land has been transferred, said the first person quoted above, adding that this is not part of the collateral provided for the outstanding loan. This implies that banks can sell these land parcels to recover dues even before a default on the loans.

“The company has ownership of the land alongside the Expressway as part of a development deal. As recovering cash from the project might be an issue right now, we have asked the company to give us additional parcels of land. We can then recover through a sale on our own,” said the second person quoted above.

A email query sent to a Jaypee Group spokesperson on Friday was not answered till the filing of the report, but the spokesperson acknowledged the receipt of the query.

On Wednesday, CNBC-TV18 reported that Jaypee Infratech was going to hand over a land parcel to reduce debt and that the IDBI Bank-led consortium would take over 500-600 acres of land worth approximately Rs.3,000 crore.

Jaypee Infratech’s standalone debt associated with the Expressway stood atRs.8,768.54 crore as on 30 September. The integrated Yamuna Expressway project includes construction, operation and maintenance of the Expressway and rights for developing over 6,175 acres of land. Jaypee Infratech is developing five townships on this land. Built under the private-public-partnership model in partnership with the Uttar Pradesh government, the Expressway had a project cost of over Rs.12,000 crore.

The Expressway, which became operational in August 2012, had reported average daily traffic of 16,490 passenger car units for the year ended 31 March with aggregate toll collection revenue of Rs.168.65 crore.

In November, Mint reported that Jaypee group is in talks to sell its entire holding in the Yamuna Expressway project, after a year-long effort to sell a partial stake in the asset failed to materialize. The report stated that the debt-laden group was in talks with infrastructure-focussed funds IDFC Alternatives and I Squared Capital for the sale.

At 1.10 a.m., shares of Jaypee Infratech were trading at Rs.8.94 per share, up 6.4%. The benchmark BSE Sensex was trading at 25,191, down 0.6%.