Jaypee Infratech: Lenders likely to negotiate with NBCC on conditional bids

Photo: City Spidey
Posted: May 24, 2019

The lenders of debt-ridden Jaypee Infratech are likely to make another attempt to negotiate with the state-owned National Buildings Construction Corporation (NBCC) on its conditional bids on Monday. Sources privy to the matter told City Spidey that IDBI Bank which is the biggest lender in Jaypee Infratech has called a meeting on May 27.

“IDBI Bank has proposed to call a meeting on May 27 to further negotiate with NBCC. While, another meeting of Committee of Creditors (COC) is scheduled on May 29. Lenders will attempt to renegotiate with NBCC on its conditional bids,” sources said.

However, sources told that the NBCC is unlikely to dilute certain conditions, including exemption from tax liability, in its offer for debt-laden Jaypee Infratech but is ready to negotiate on the proposal related to unsold flats. Though, the NBCC has shown interest to negotiate on its proposal related to unsold flats.

Last week, the National Company Law Appellate Tribunal (NCLAT) had annulled voting by homebuyers and lenders on NBCC’s bid and allowed renegotiation on the offer by May 30. Voting process could start from May 31.

According to sources, lenders have shown reluctance to acquire up to 2,207 unsold flats worth Rs 1,756 crore as proposed by NBCC in its revised offer.

In its revised offer, NBCC proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.

TAGS: Jaypee Infratech case / Jaypee Infratech insolvency proceedings / NBCC bid in JIL case / Voting NBCC bid / Noida news