Jaypee Infratech’s creditors have accepted the resolution plans of NBCC and the Suraksha Group for the bankrupt developer and decided to put both offers to vote next week to select the winner, people with direct knowledge of the matter said.
The voting will start on June 14, the committee of creditors (CoC) decided at a meeting on Thursday. The CoC members comprising lenders and homebuyers in Jaypee Infra’s stuck projects will have time till June 23 to vote for their choice of the bidder.
Both Suraksha and NBCC are likely to hold virtual meetings with homebuyers to explain the details of their plans before the beginning of the voting. In December 2019, the CoC had selected NBCC’s bid to acquire the debt-stressed company with 97.36% of the votes in favour of the offer.
The other contender was Suraksha Realty. In March 2020, the National Company Law Tribunal (NCLT) approved NBCC’s proposal with modifications, but the state-run company moved the appellate court against the modification to its plan.
The Supreme Court took charge of the matter from the National Company Law Appellate Tribunal (NCLAT) on suo moto in the interest of homebuyers. It rejected NBCC’s plan as non-compliant on March 24, 2021, with a direction to Jaypee Infratech Ltd’s insolvency resolution professional to invite fresh bids from both parties and conclude the process within 45 days.
In its revised plan submitted this week, the Suraksha Group has offered to deposit Rs 300 crore immediately if Jaypee Infratech’s creditors approved its bid, so that construction work of the bankrupt developer’s stuck projects can resume without waiting for the court’s approval. This proposal to deposit the money is in addition to its earlier offer.
NBCC has offered 1,100 acres of additional land valued at over Rs 2,200 crore to dissenting creditors.
About 20,000 home buyers are waiting to get delivery of their homes in Jaypee Infratech’s projects. The Allahabad bench of the NCLT had in 2017 classified the company as insolvent on a petition filed by IDBI Bank Ltd. The company had defaulted on a Rs 526 crore loan from the bank.
Source: Economic Times