Debt-stressed Jaypee Infratech’s financial creditors and home buyers have voted against the bid of Mumbai-based Suraksha Realty, the only offer that was left in fray to acquire the company.
Both financial creditors and home buyers are now keenly awaiting the impending ruling by the Allahabad bench of National Company Law Tribunal (NCLT) on the extension to the insolvency proceedings beyond the current deadline of May 6.
“If NCLT allows an extension to the process, the Committee of Creditors (CoC) is likely to reopen the process and invite fresh expression of interests that will allow all interested entities to participate again,” said the other person mentioned above.
Jaypee Infratech’s resolution professional Anuj Jain declined to comment for the story.
Of the total, 41.85% votes were cast against Suraksha’s offer and 23.5% in favour. Of the 41.85% votes against the offer, 39.64% votes were cast by financial creditors. Around 22%, of the 23.5% cast in favour of Suraksha’s bid, were by home buyers, showed a regulatory filing by Jaypee InfratechNSE 4.55 %.
Large number of home buyers did not vote and preferred to abstain.
Apart from Suraksha and NBCC, Adani Group also recently showed interest in acquiring Jaypee Infratech. State-run NBCCNSE -1.53 % has also secured approvals from government for its revised bid, albeit after its bid was rejected by lenders.
IDBI Bank, Jaypee Infratech’s lead lender, has approached the Allahabad bench of NCLT to seek this extension. The next hearing is scheduled for May 6, which also happens to be the deadline to complete the insolvency process for debt-hit realtor.
Suraksha Realty’s bid was the only offer that remained in the fray after bankers rejected the bid of state-owned NBCC for lack of approvals from government authorities. Lenders and home buyers voted on the bid for the last 3 days starting Tuesday.
Earlier too, the NCLT had granted extension to the lenders and Interim Resolution Professional Anuj Jain to complete the Corporate Insolvency Resolution Process (CIRP). On January 28, the NCLT had extended the period of the CIRP by another 90 days as 180 days mandated under the Insolvency and Bankruptcy Code (IBC) was coming to an end on February 5, 2019.
Under the IBC, a resolution process has to be completed within 180 days with a further extension of 90 days to 270 days. As per the rules, if the company fails to complete the CIRP within the mandated 270 days, then the company goes for liquidation.
IDBI is believed to have requested the tribunal to factor the litigation period at several judicial forums, which includes the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court.
Source: Economic Times