Jaypee Infra IBC case: Four years later, a fourth round of bids
Both state-run NBCC and Suraksha Realty submitted modified resolution plans for Jaypee Infratech to the resolution professional of the bankrupt firm, and the bids are expected to be opened later today.
More than 20,000 homebuyers await the resolution of Jaypee Infratech, after yet another round of bids were submitted by suitors on Wednesday.
Both state-run NBCC and Suraksha Realty submitted modified resolution plans for Jaypee Infratech to the resolution professional of the bankrupt firm, and the bids are expected to be opened later today, as per two people directly in the know. This is the fourth round of bids for the Noida-based company, which has been undergoing bankruptcy proceedings for over four years now.
On April 3, NBCC approached the Supreme Court seeking another four weeks to "assess the viability and feasibility of submitting a fresh/modified resolution plan for JIL (Jaypee Infratech Limited)." However, it later decided to submit a modified bid anyway, confirming the development in an exchange notification on Thursday.
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"Pursuant to the directions of Hon'ble Supreme Court order dated March 24, 2021 passed in the matter of Jaypee Kensington Boulevard Apartments Welfare Association & ORS. Vs. NBCC (India) LTD. & Ors. the Interim Resolution Professional of JIL has invited fresh/ modified Resolution Plan from NBCC. It is hereby informed that NBCC has submitted the fresh /modified Resolution Plan for Jaypee Infratech Limited (JIL) on April 07, 2021 with respect to the Corporate Insolvency Resolution Process of JIL," NBCC said in a note to exchanges.
The fresh bids were submitted after a Supreme Court ruling on March 24, which set aside an earlier ruling by the National Company Law Tribunal clearing NBCC’s resolution plan. The creditors committee (CoC) had earlier cleared NBCC’s resolution plan with over 97 percent votes cast in its favour in December 2019, which had subsequently been approved by NCLT in March 2020.
In a judgment delivered on March 24, the apex court said the Insolvency Resolution Professional can invite modified or fresh resolution plans only from Suraksha Realty and state-run NBCC, the two applicants who were allowed to do so in the judgment on November 6, 2019. The court ordered that the resolution plans be submitted in two weeks, and the entire process of selecting the new winning bid be completed in 45 days.
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The Supreme Court also noted that the Rs 750 crore deposited by the parent company Jaypee Associates would not go to Jaypee Infratech, and therefore NBCC would not be allowed to utilise it for construction of units for the project.
The CoC is now expected to meet on Monday, April 12 to review both the bids received in this round, and hold final negotiations in the matter over the course of the month, before the plans are put to vote, according to two senior executives directly overseeing the process.
Jaypee Infratech is facing claims of over Rs 9,700 crore from 13 financial creditors led by IDBI Bank, and of over Rs 13,000 crore from homebuyers.
(Edited by : Jomy)
First Published: Apr 8, 2021 3:39 PM IST
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