IIFCL tears into Jaypee Infra bid evaluation process, calls for fair review


IIFCL tears into Jaypee Infra bid evaluation process, calls for fair review
A key lender to bankruptcy-hit Jaypee Infratech has ripped apart the bid evaluation process followed by the resolution professional conducting the auction of the firm, saying it has “serious deficiencies and shortcomings”.

India Infrastructure Finance Co Ltd (IIFCL), which has claims of about Rs 9 billion (Rs 900 crore), or 10.57 per cent, of Jaypee’s total debt, wants a “fair and transparent” process adopted and the current evaluation that pegs the company’s worth at less than half of its market value of Rs 171.1 billion (Rs 17,110 crore) be “summarily scrapped”.

IIFCL, in a letter to the resolution professional, tore into its valuers assuming much less toll collections from Jaypee-built expressway.

“The valuation conducted by the lenders consortium recently during 2017, the pessimist scenario for the toll collection from the expressway aggregate to Rs 67,980 crore (Rs 679.8 billion) during the remaining concession period ie from April 2018 to August 2048”, it wrote.

 

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