Debt-hit Jaypee Infratech’s Committee of Creditors (CoC), in a meeting held on Thursday, have decided to put the revised bid of state-run NBCC NSE -0.86 % (India) to acquire the realty developer on vote from Friday, said two persons with direct knowledge of the development.
Both home buyers and lenders can vote on the state-owned company’s proposal until June 10.
“NBCC has not made any major changes to its revised bid. It has now offered to transfer Jaypee Infratech’s unsold residential inventory to lenders at Rs 1,300 crore as against earlier offer of Rs 1,700 crore,” said one of the persons mentioned above.
NBCC has not made any changes with regards to changes sought by lenders on issues including future taxability and YEIDA land transferability.
Jaypee Infratech’s Insolvency Resolution Professional Anuj Jain declined to comment for the story.
According to media reports, Jaypee Infratech’s lenders had recently asked NBCC to sweeten its bid to acquire the beleaguered company and have demanded that the public sector firm should offer 1,426 acre land instead of 950 acre besides taking onus of getting approvals from income tax and development authorities.
Financial creditors had suggested that NBCC should undertake to get the requisite approval from Yamuna Expressway Industrial Development Authority (YEIDA) for the land transferability. In addition to this, lenders had also put a condition with regards to future taxability.
Meanwhile, Adani Group has made an unsolicited and non-binding offer to acquire Jaypee InfratechNSE 2.63 % and is ready to infuse Rs 1,700 crore to expedite the construction of stuck projects of the company.
On May 17, the National Company Law Appellate Tribunal (NCLAT) had annulled the voting by Committee of Creditors representing Jaypee Infratech’s lenders on NBCC’s bid to acquire the beleaguered company.
Hearing a plea by IDBI Bank, a key lender to Jaypee Infratech, seeking a stay or annulment of the voting process, a three-member bench of the NCLAT had asked the financial creditors to conduct a fresh voting from May 31.
IDBI Bank had opposed the state-run company’s for the debt-hit company terming it as a conditional offer. The bench has also allowed CoC to renegotiate with the sole bidder, NBCC India, on its offer.
Jaypee Infratech has an outstanding debt of about Rs 9,800 crore. Its lenders include IDBI, IIFCL, Axis Bank, Bank Of Maharashtra, Corporation Bank, ICICI Bank, IFCI, J&K Bank, LIC, SBI, Syndicate Bank, Srei Equipment Finance, and Union Bank.
About 32,000 home buyers were left in the lurch after the Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of IBC, 2016. Jaypee had defaulted on a Rs 526-crore loan by the bank.
In 2017, the NCLT admitted the application of an IDBI Bank-led consortium seeking resolution of Jaypee Infratech’s debt under the Insolvency and Bankruptcy Code.
