The government’s construction arm NBCC on May 26 has said that its resolution plan for acquiring the embattled firm Jaypee Infratech was ‘legally compliant’ and that if it is permitted to submit a revised bid, it will attempt to answer all objections raised by the interim professional Anuj Jain.
At its meeting held on May 24, the Committee of Creditors (CoC) deferred the voting on Suraksha Group's bid. The lenders also decided to take a vote on May 27-28 to decide whether the two contenders - NBCC and Suraksha - should be given additional time to submit fresh bids.
If the revised bids by both the applicants are not allowed by the Committee, then Suraksha’s plan, whose voting was deferred on May 24, will be put to vote.
The committee of creditors of debt-ridden Jaypee Infratech Ltd had met on May 24 to discuss the addendum to its final bid filed by the NBCC.
The IRP was of the view that both the NBCC’s proposals offering dissenting financial creditors (DFCs) non-convertible debentures for payment of liquidation value and the proposal offering Guarantee Security Interest and Promoter Security Interest for payment of liquidation value, were not in accordance with the Insolvency and Bankruptcy Code (IBC).
NBCC had filed an addendum to its bid and also written a letter to the Interim Resolution Professional (IRP) Anuj Jain on May 24, drawing his attention to the legal opinion taken from retired judge Justice AK Sikri, which was submitted along with the NBCC’s Resolution Plan dated May 18, 2021.
Earlier, over the weekend, it had even questioned Anuj Jain’s jurisdiction in rejecting its offer.
On May 26, NBCC sent another letter to Anuj Jain, the Interim Resolution Professional (IRP) for Jaypee Infratech Ltd (JIL), saying that it had submitted a plan after considering all the factors and taking the best possible legal advice.
The Supreme Court Judgment, dated March 24, which directed for calling of bids from NBCC and Suraksha, only mentioned about making a provision for full liquidation value for dissenting financial creditors and did not provide for any undertaking for any kind, NBCC said in its letter.
It said that it had responded to the IRP’s letters on non-compliance issues related to its offer to dissenting financial creditors.
Accordingly, it had made provisions in the plan for the complete liquidation value for DFCs in various forms, the letter said.
“We understand from above letters that a few provisions like promotors guarantee, personal guarantee of Shri Manoj Gaur and NCDs have not been considered as valid provisions. You have also asked for a short fall undertaking to be provided by NBCC. Though we consider our plan as legally compliant as per our understanding we appreciate that you have to forward legally compliant plans to CoC as per your understanding,” the letter said.
Since NBCC is fully committed to the resolution plan which will provide houses to about 20,000 home buyers who are waiting since long, “we are ready to consider your point of view and put up to our Board for necessary amendments,” the NBCC letter said.
However, in case NBCC is asked to submit a Revised Plan, “we shall do on the basis of your observations to your satisfaction for the benefit of all the stakeholders, primarily the homebuyers who should not suffer due to differing legal interpretations,” the letter said.
After the Committee of Creditors voting on May 27 and May 28, if NBCC is required to submit a Fresh Plan, “we would also like to have a teleconference with yourself and your legal team on further way forward in this regard,” the letter added.
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