Jaypee Infratech: CoC to meet on June 20 to decide future action

Photo: Samrat Roy
Posted: Jun 16, 2019

The creditors, including banks and home buyers, are slated to meet on June 20 to decide on the future course of action in insolvency proceedings of the Jaypee Infratech. They called meeting after rejection of state-owned NBCC’s revised bid when majority of the banks voted against it.

Interim Resolution Professional (IRP) Anuj Jain said in a regulatory filing that a meeting of Committee of Creditors (CoC) will be held on June 20, 2019. However, he did not disclose the agenda of the meeting.

Sources, however, claimed that there will be a discussion on the way forward in the ongoing insolvency proceedings. The home buyers are especially dejected after the rejection of NBCC’s bid, sources had said. 

The National Company Law Appellate Tribunal (NCLAT) had clarified on June 10 that it did not bar lenders from voting against NBCC’s resolution plan. It also directed IRP to report the outcome of voting process directly to it. The NCLAT also advanced the date of next hearing to July 17 from July 2.

The exact percentage of votes in favour and against the NBCC’s takeover plan was not disclosed due to an insolvency court order. 

The sources had said the bid possibly did not muster the requisite nod of two-third of lenders and buyers. The voting result is to be placed before the NCLAT. In most bankruptcy proceedings, lenders have the right to vote for or against a resolution plan for a debt-laden firm.

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 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 resolution process / JIL resolution / Voting on NBCC bid / Insolvency proceedings of Jaypee Infratech / CoC meet in Jaypee case / Noida news on City Spidey / Noida news