Companies

Jaypee Infra insolvency: NBCC’s revised bid may not pass muster with CoC

Garima Singh New Delhi | Updated on June 10, 2019 Published on June 10, 2019

This is the second round of the bidding process to revive Jaypee Infratech, which went into insolvency in August 2017   -  Reuters

Company understood to have fallen short of 66 per cent vote share requirement

State-owned NBCC’s revised bid to gain control of debt-ridden Jaypee Infratech may have hit a roadblock with the company understood to have failed in getting the required 66 per cent vote share from the Committee of Creditors, which includes homebuyers and lenders.

Although no official word is out on NBCC failing to make the cut, sources said that the company is still in the race as no final order is out yet from the CoC. The ball is now in the court of NCLAT, said sources familiar with the developments.

Meanwhile, NCLAT headed by Justice SJ Mukhopadhaya on Monday reportedly directed the Resolution Professional of Jaypee Infratech to report about the outcome of the voting. At the same time, the NCLAT Chairman clarified that the appellate tribunal has not passed any directions or said that lenders can’t vote against NBCC.

“We have not said don’t vote against NBCC. We have said CoC (Committee of Creditors) may not file the final report if it is rejected,” the Bench said.

On the 10-day voting period that ended on June 10, homebuyers — who were in favour of NBCC acquiring Jaypee Infratech — voted in favour of the company. However, it was lenders who voted against the company, said sources.

The homebuyers had a vote share of 59 per cent, while the lenders had 41 per cent. Of the total 22,000 homebuyers, around 11,000 voted during the 10-day voting process which started on May 31.

Besides homebuyers, there were 13 banks with voting rights in the Committee of Creditors (CoC). NBCC, in its proposal, had said that if it wins the bid, it will infuse an equity capital of ₹200 crore and complete the construction of over 20,000 flats by July 2023.

NBCC’s proposal was put to vote earlier in May, but bankers opposed the bid citing a few conditions in the resolution plan submitted by the company.

The Adani Group has also submitted a bid to acquire Jaypee Infratech but it is learnt to be unsolicited and non-binding.

It may be recalled that Mumbai-based Suraksha Realty’s proposal to acquire the company was earlier rejected by the financial creditors.

Published on June 10, 2019
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