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Jaypee Infratech to hold Committee of Creditors meeting on November 27

Formal agenda of the meeting not disclosed but sources say evaluation matrix and process note to be discussed and voted at the CoC meeting

 
 
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After five companies -- NBCC, Kotak Investment, L&T Infrastructure, Singapore-based Cube Highways, and Suraksha group -- have shown interest in taking over Jaypee Infratech, the embattled company has announced that it would hold a meeting of committee of creditors on November 27.

In a regulatory filing on the exchanges, the company said, "Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule III, Part A, Para A, subpara 16(g) thereof, we wish to inform you that a meeting of Committee of Creditors will be held on 27th November 2018."

The agenda of the meeting has not been disclosed but sources told Moneycontrol that the evaluation matrix and the bid process note is likely to be discussed and voted on at the next CoC meeting. Regular business updates would also be taken up.

Evaluation matrix is a set of parameters shared with all the bidders based on which their bids are evaluated. These parameters include aspects such as which firm is bringing in how much cash, who has real estate competency, who has the net worth, the turnaround capability and so on. These criteria are expected to be discussed at the meeting and weight would be assigned to the bidders following which they would be selected.

A process note shares the details of how the bidding process is expected to pan out, the time duration after which bids would be called, when would negotiations take place among others.

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Earlier, the company had postponed the CoC meeting slated for November 20.

Legal experts had told Moneycontrol on November 20 that the next step would entail an evaluation of the assets of JIL by the bidders. "Once that process is complete, these companies will have to submit their bids. After the bids have been submitted, the committee, that comprises all stakeholders, including home buyers and bankers, will vote on which bidder to choose," legal experts had said.

In October, after creditors of Jaypee Infratech (JIL) approved a proposal to invite bids for the embattled company, the interim resolution professional (IRP) Anuj Jain had invited expressions of interest for resolution plans from companies.

The last date for submitting the expressions of interest was November 9. The provisional list of applicants was to be prepared by November 19 and 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, while applicants are required to submit the resolution plan by January 5, 2019.

This is the second time that the resolution process has commenced. In the first time round, there were three bidders in the race to buy Jaypee Infratech - Lakshadweep, 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 for being too low.

In the second resolution process, L&T Infrastructure Development Projects said it is only interested in 165-km Yamuna Expressway and not the development of land parcels attached to the expressway belonging to JIL.

In a filing to BSE on November 20, state-owned NBCC said it has submitted the EoI for submitting a resolution plan for JIL and the company has been provisionally shortlisted by IRP as prospective resolution applicant of JIL. Suraksha Asset Reconstruction has shown interest along with its entities Lakshdeep Investments and Finance and Suraksha Realty.

Homebuyers have said that they support the NCLT process. "We are fully supportive of the NCLT process," home buyers representatives said, adding that with the process for resolution of JIL picking pace, the NCLT should deploy the Rs 750 crore collected by the Supreme Court for the benefit of home buyers for construction of apartments.

Home buyers had filed an application with the NCLT stating that the voting rules were not fair and none of the resolutions were getting passed because of the mismatch. The application filed by nine buyers' associations had sought a clarification on the 'flawed voting rules'.

They had sought a clarification on the 'question of law' that pertains to the procedure for determining the voting percentage among the committee of creditors. This is to ensure the "voice of the home buyers is not taken in a fragmented manner."

The NCLT had on August 10, 2017, admitted IDBI Bank’s plea to initiate insolvency proceedings against the JIL for defaulting on 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.
Vandana Ramnani
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