Jaypee's creditors waiting for end of voting to go into a huddle
Once the ongoing voting process to decide the bidder to resolve debt-ridden Jaypee Infratech Ltd. is completed on December 16 deadline, sources said the lenders will meet on November 18 to carry forward insolvency proceedings.
"A meeting of Committee of Creditors (CoC) will be held on December 18, 2020. The agenda for the meeting was not disclosed, but according to the grapevine, the meeting will discuss the way forward," said a source aware of the developments in the matter.
The Debt-ridden Jaypee Infratech went into insolvency in 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking resolution of the firm. Jaypee Infratech, a subsidiary of Jaiprakash Associates, has an outstanding debt of nearly Rs 9,800 crore.
In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshadweep, part of Suraksha Group, was rejected by the lenders.
Interim Resolution Professional (IRP) Anuj Jain, in October 2018, started a fresh initiative to revive Jaypee Infratech on the NCLT's direction. In the second round, lenders first rejected bid of Suraksha Realty and then that of state-owned NBCC.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC Committee of Creditors (CoC) of Jaypee Infratech.
In a big jolt to the Jaypee Group, the Supreme Court on November 6 directed completion of corporate insolvency resolution process within 90 days for Jaypee Infratech Ltd and said the revised resolution plan will be invited only from the NBCC and Suraksha Realty.
The apex court had said that the pendency of any other application before the NCLT or NCLAT, including any interim direction, shall be no impediment for the IRP to receive and process the revised resolution plan from the two bidders.
"We direct the IRP to complete the CIRP within 90 days from today. In the first 45 days, it will be open to the IRP to invite revised resolution plan only from Suraksha Realty and NBCC, respectively, which were final bidders and had submitted resolution plan on earlier occasion and place the revised plan(s) before the Committee of Creditors (CoC), if so required, after negotiations and submit report to adjudicating authority NCLT within such time," the bench said.
"In the second phase of 45 days commencing from 21st December 2019, the margin is provided for removing any difficulty and to pass appropriate orders thereon by the adjudicating authority," the top court said.