While the voting to decide on state-owned the National Building Construction Company (NBCC) bids to acquire debt-ridden Jaypee Infratech is ongoing, a fresh hindrance in the form of IDBI bank has emerged wherein the highest lenders in the group on Saturday filed a fresh plea before the National Company Law Appellate Tribunal (NCLAT) seeking to vote against NBCC’s bids.
Sources aware with the matter have confirmed the fresh development. However, they said the voting process started on May 31 on the direction of NCLAT will be continued till June 10.
According to the sources, the IDBI Bank-led consortium has approached the NCLAT, with a view that secured financial creditors should be permitted to vote against NBCC’s resolution plan.
“Lenders have pleaded that Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain and the CoC should be allowed to explore other alternatives. This could include inviting fresh expression of interest and considering bids that already have been submitted by other companies,” said a source on the condition of anonymity.
Whereas, the committee of creditors (CoC) had decided to put on vote NBCC’s bid to acquire the debt-laden realty firm even as the bankers had a reservation on the state-owned firm not agreeing to dilute certain conditions in its offer including relief from future tax liabilities.
The appellate tribunal had left it to the CoC to approve the resolution plan of NBCC “if it is in accordance with the law.”
In its last meeting held on Thursday, the CoC decided to put on NBCC’s bid even as the state-owned firm did not dilute its conditions related to exemption from future tax liabilities and seeking permission from the Yamuna Expressway Industrial Development Authority (YEIDA).
Sources said that the banks had reservations to NBCC’s bid, but the CoC still decided to put the offer on the vote as per the direction of the NCLAT.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 per cent votes and the rest lies with the bankers. For the bid to be approved, 66 per cent voters should be in favour of the deal.
In 2017, Jaypee Infratech went into insolvency process after the National Company Law Appellate Tribunal (NCLAT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.