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Jaypee Infratech case: Voting underway on revised plans submitted by NBCC and Suraksha Group

The e-voting commenced at 10.00 am on June 10 and will close at noon on June 23

On May 23, the Chairman of Jaiprakash Associates (JAL) Manoj Gaur wrote a letter to the IRP, urging him to consider JAL's settlement offer, which was submitted before the Supreme Court in 2019.

On May 23, the Chairman of Jaiprakash Associates (JAL) Manoj Gaur wrote a letter to the IRP, urging him to consider JAL's settlement offer, which was submitted before the Supreme Court in 2019.

Jaypee Infratech’s financial creditors on June 14 started voting on the revised resolution plans submitted by the government’s construction arm NBCC and Mumbai-based Suraksha Group to take over the embattled firm and complete construction of around 20,000 homes that have been delayed by almost a decade.

The e-voting commenced at 10.00 am on June 14 and will close on June 23, 2021, at 12.00 noon.

A decision to put the resolution plans to vote from June 14 to June 23 was taken at a meeting of the Committee of Creditors (CoC) held on June 10. This will be the fourth round of the bidding process.

"We wish to inform you that the CoC has in its meeting held on June 10, 2021, decided to put to vote the final Resolution Plans of (1) Suraksha Realty Limited along with Lakshdeep Investments and Finance Private Limited (“Suraksha”) and (2) NBCC (India) Limited. The e-voting shall commence on June 14, 2021, (10.00 a.m.) and shall close on June 23, 2021 (12.00 p.m.)," a regulatory filing by the company had said on June 10.

On June 10, the CoC meeting also discussed the revised resolution plans of the two contenders - NBCC and Suraksha - under the Corporate Insolvency Resolution Process (CIRP). In its final bid, NBCC has offered 1,903-acre land to bankers and 90 per cent stake in Yamuna Expressway but will also take a debt of around Rs 2,000 crore against the road project.

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Suraksha has offered to bankers over 2,500-acre land and nearly Rs 1,300 crore by issue of non-convertible debentures.

In the Committee of Creditors (CoC), homebuyers have around 56.63 per cent voting rights, lenders have about 43.25 per cent and the remaining is with fixed deposit holders.

On June 10, Interim Resolution Professional (IRP) Anuj Jain is managing JIL and running the bankruptcy proceedings, told Moneycontrol that financial creditors of Jaypee Infratech had decided to put to vote the revised bids of NBCC Ltd and Suraksha Group and that he had submitted a report to the CoC, stating that the NBCC's bid is compliant with the Insolvency and Bankruptcy Code (IBC).

Both the plans have been found to be compliant. “I have submitted the compliance report,” he had said.

Both Suraksha Group and NBCC held separate webinars with homebuyers on June 13 and address their issues with regard to the resolution plans.

In the webinar, NBCC said that its bid was complaint with IBC and expressed confidence that it will get approval from Yamuna Expressway Industrial Development Authority (YEIDA) to hive off Yamuna Expressway to a Special Purpose Vehicle (SPV) and the transfer of 90 per cent stake to bankers.

"We have tried to improve the plan from the last time …We get support from the government and we are responsible to the government," said NBCC CMD P K Gupta.

He said the 70 per cent of the pending flats will be completed over the next two and a half years.

The company would seek approval of YEIDA after it wins in the bidding process, he said.

JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.

In the first round of the CIRP, the Rs 7,350-crore bid of Suraksha Group was rejected by lenders. The CoC rejected the bids of both Suraksha Realty and NBCC in the second round held in May-June 2019.

In November 2019, the Supreme Court directed the completion of Jaypee Infratech's insolvency process within 90 days and the revised resolution plan to be invited only from the NBCC and Suraksha Realty.

In December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.

In its bid in December 2019, NBCC had offered 1,526 acres of land to lenders under a land-debt swap deal. On Yamuna Expressway, NBCC has proposed to transfer the road asset to lenders but before that, it would take a loan of around Rs 2,500 crore against toll revenue to fund construction spend.

In March 2020, NBCC had got approval from the NCLT to acquire JIL. But the order was challenged before the NCLAT and later in the Supreme Court, which on March 24 this year, ordered that fresh bids should be invited only from NBCC and Suraksha.

The apex court had also directed that the resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed by the IRP to extend the timeline for finding a buyer for JIL.
Vandana Ramnani
first published: Jun 14, 2021 12:04 pm

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