Jaypee Infra insolvency resolution: Voting for NBCC, Suraksha bids to be simultaneous

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Published: December 8, 2019 2:41:29 AM

Some lenders said the Supreme Court’s November 6 order clearly states that the CoC has to identify/evaluate the best bid after negotiations and should put that to vote.

Jaypee Infra insolvency resolution, Jaypee Infratech, JIL committee of creditors, NBCC, ICICI Bank, Axis Bank, Supreme CourtThe committee also directed both applicants to further revise and submit their final bids to the CoC by 11 pm on Saturday.

Jaypee Infratech (JIL) lenders on Saturday decided to put to vote the final bids of state-owned NBCC and the SPV led by Suraksha Reality simultaneously, beginning December 10. The voting will end on December 16. The committee also directed both applicants to further revise and submit their final bids to the CoC by 11 pm on Saturday. The decision was taken at the 16th meeting of the JIL committee of creditors (CoC), which met to take a decision on the final resolution plans of NBCC and the SPV of Suraksha Realty and Lakshadweep Investments & Finance.

This is the third round of bidding for the cash-strapped real estate developer, since the matter went to the National Company Law Tribunal (NCLT) in August 2017. The third round of bidding has been initiated on the Supreme Court’s directions.

Sources said the CoC first met both the companies separately to discuss their bids, post which the members decided
to put the plans for voting simultaneously.

People in know of the development said the matter seems to be heading again for more legal troubles as the lenders were divided on which bid to be put to vote first. ICICI Bank and Axis Bank were opposed to simultaneous voting on both resolution plans. They were of the view that plan of the highest bidder (H1) should have been put up for voting first.

Some lenders said the Supreme Court’s November 6 order clearly states that the CoC has to identify/evaluate the best bid after negotiations and should put that to vote.

Around 13 banks and more than 23,000 homebuyers have voting rights in the CoC. Homebuyers represent 59.26% of voting rights, while bankers have 40.71%. For approval of any resolution plan, at least 66% votes should be in favour.

Suraksha has upped its upfront payment to lenders to Rs 190 crore from Rs 175 crore earlier, while it increased the land bank in the land-debt swap deal to 2,275 acre from 2,220 acre in its final bid submitted on December 3. NBCC in its final bid has offered 1,526 acres of land to lenders from 1,426 acres earlier. It also reduced the timeline for completion of over 20,000 flats to three-and-a-half years from the earlier four years. Both are yet to submit their final bids after they were given additional time till Saturday 11 pm.

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