Having received all requisite government approvals, NBCC will assert that its bid does not require any further approvals from any government department, and is thus eligible for consideration under the IBC.
State-run NBCC will not alter the broad contours of its resolution plan for Jaypee Infratech (JIL), as it submits a redrafted plan before the lenders of the insolvent realty firm for deliberation in their meeting scheduled for May 9. Having received all requisite government approvals, NBCC will assert that its bid does not require any further approvals from any government department, and is thus eligible for consideration under the Insolvency and Bankruptcy Code (IBC).
The state-run firm’s submission in the revised plan, submitted with resolution professional Anuj Jain on April 24, that it reserved the right to “amend, modify or supplement the resolution plan” as per directions from the administrative authorities prior to submission of the plan before the adjudicating authority was the primary reason for JIL’s committee of creditors (CoC) to reject the same in its April 26 meeting. Any resolution plan, under the IBC, cannot be conditional. It has now removed this qualification.
NBCC had to get approvals from its administrative authorities i.e, NITI Aayog, Department of Investment and Public Asset Management, Ministry of Finance and Ministry of Housing and Urban Affairs for submitting its bid for JIL. The CoC for JIL has already voted out Suraksha Realty’s bid as it was offering too little to the financial creditors, leaving NBCC as the only contender for the beleaguered firm. Suraksha was the other contender for JIL.
For its May 9 meeting, the JIL CoC has set a four-point agenda. Apart from discussing the results of voting on Suraksha Realty, the CoC will “continue discussion on the resolution plan of NBCC”. It will also discuss the next steps required for the corporate insolvency resolution process of the company. Also, the CoC is open to take up “any other matter that may be raised by the members of the CoC”.
Private sector major Adani has already put a request before the CoC to allow it to bid for JIL.
Meanwhile, the Allahabad Bench of the National Company Law Tribunal (NCLT) on Monday directed that the CIRP for JIL will continue till May 21, the next date of hearing. The 270-day deadline for arriving at a resolution was to end on May 6.
In its revised plan, NBCC has proposed to pay secured financial creditors (FCs), against their Rs 9,783-crore admitted claim, Rs 1,500 crore “payment of upfront amount equivalent to an amount of fresh debt”, transfer of 100% shareholding each of the land bank SPV and the expressway SPV. It will pay Rs 20 crore to the operational creditors (OCs) of their Rs 464.20-crore admitted claim.
Jaypee Infratech’s total admitted financial debt comes to Rs 23,723 crore. The admitted claims of homebuyers and fixed deposit holders stand at Rs 13,389 crore and Rs 23 crore, respectively, while refund seekers’ admitted debt is Rs 79 crore. For FD holders, the government-owned infrastructure firm has proposed to make an upfront payment of Rs 23 crore. Of the admitted claim of Rs 79 crore of refund seekers, NBCC has offered to pay Rs 62.40 crore upfront.
Homebuyers would get only their completed housing units at no extra cost, but not any money in lieu of their Rs 13,389-crore admitted claims.