Expression of interest invited for resolution plan of Jaypee Infratech

Three days after creditors of Jaypee Infratech (JIL) approved a proposal to invite bids for the embattled company, the interim resolution professional Anuj Jain has invited an expression of interest (EOI) for resolution plans from companies, as per a public notice issued on October 25.

The last date for submitting the expression of interest is November 9 and the provisional list of applicants will be prepared by November 19. The last date for submission of objections to the provisional list is November 24. The list of prospective resolution applications will be issued on December 4, 2018.

Applicants need to submit the resolution plan by January 5, 2019.

On August 10, 2017, the NCLT had admitted IDBI Bank's plea to initiate insolvency proceedings against the JIL for defaulting on a Rs 526-crore loan. While admitting the plea of IDBI Bank, the NCLT had appointed Anuj Jain as IRP to manage the company's business.

As the resolution process commenced, there were three bidders in the race to buy Jaypee Infratech -- Lakshadweep, the Adani group and Kotak Realty Fund-Cube Highways. Only Lakshadweep, a joint venture of Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, was left in the fray, but its Rs 7,000 crore offer was ultimately rejected by a committee of creditors for being too low.

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Vandana Ramnani

Associate Editor, Real Estate|Moneycontrol News

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Earlier this week, financial creditors of the company including homebuyers, fixed deposit holders and banks, rejected all proposals except the one to do with inviting expression of interest for resolution plans.

"All resolutions except one have been defeated due to lack of adequate vote share. Home buyers understand that with the current voting rules no resolution can be achieved. The concerned authorities need to correct the voting procedure and unless that happens the bankruptcy procedure is bound to fail and the company is destined to undergo liquidation," homebuyers said.