SPIDEY BUZZ

Jaypee Infratech: CoC likely to discuss NBCC’s offer on May 9

By Praveen Dwivedi
Photo: City Spidey
Posted: May 05, 2019

The Committee of Creditors (CoC) of debt-ridden Jaypee Infratech will meet on May 9 to discuss the bid of state-owned National Building Construction Company (NBCC) to acquire the Jaypee group realty firm, sources told City Spidey.

The meeting has been called as creditors on Friday rejected the bid of Suraksha Realty group, which was the lone contender after rejection of NBCC’s offer in absence of approvals from the government departments.

As per sources, Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain informed that a meeting of CoC has been called on May 9.

The agenda of the meeting was not disclosed in the regulatory filing. However, sources said the panel will discuss the NBCC’s bid. The CoC would also be discussing the voting results of Suraksha Group. Meanwhile, the court-mandated deadline for completing the resolution process ends on May 6.

Lenders have sought extension of the deadline and the matter is pending before the Allahabad bench of the National Company Law Tribunal (NCLT). After the rejection of its bid on May 26 by the CoC, NBCC received the necessary approvals from the government departments including the Ministry of Housing and Urban Affairs.

NBCC had requested the IRP to reconsider its bid on merit. On May 3, financial creditors rejected Suraksha Realty's bid for the debt-ridden firm as the offer was low on upfront cash payment. Adani Group has also shown interest to acquire Jaypee Infratech and complete over 20,000 delayed flats in Noida.

Interestingly, Jaypee Group’s promoters too have put in a bid to retain control of the company. Under the insolvency proceedings on Friday, members representing 41.85 per cent of voting rights were against the proposal, while 23.47 per cent were in its favour. Most of them who voted in favour were homebuyers, who hold about 60 per cent of the voting rights in the CoC.

The remaining around 34.69 per cent homebuyers abstained from the voting process, which started on April 30 and concluded on Friday. In 2017, Jaypee Infratech went into insolvency after the NCLT admitted the application by an IDBI Bank-led consortium seeking resolution of the firm.

Jaypee Infratech, which is a subsidiary of Jaypee Group’s flagship firm Jaiprakash Associates, owes nearly Rs 9,800 crore to financial creditors. Anuj Jain was appointed as the IRP to oversee the affairs of the company and conduct the bidding process to find a buyer for Jaypee Infratech who can complete pending 20,000 flats in Noida, Uttar Pradesh.

TAGS: JIL insolvency proceedings / Jaypee Infratech case / Jaypee incomplete projects / Suraksha bid for JIL rejected / NBCC bid to acquire JIL rejected / Jaypee home buyers / Noida news

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