Jaypee Infra insolvency: Creditors decide to consider Suraksha's bid along with NBCC's; may meet on Thursday
NEW DELHI: Jaypee Infratech's financial creditors are likely to meet on June 10 to discuss the resolution plans of state-owned NBCC and Suraksha group to acquire the debt-laden company.
Interim Resolution Professional Anuj Jain is managing Jaypee Infratech Ltd (JIL) and running the bankruptcy proceedings.
Just before the start of the meeting of Committee of Creditors (CoC) on Monday, Suraksha group submitted its revised bid, offering more funds to banks while reducing the timeline to complete some stalled projects for benefit of homebuyers.
According to sources, the CoC has decided to consider Suraksha's bid as well, even though it was submitted after the official deadline of June 4.
The Mumbai-based firm, which is pitted against NBCC to acquire JIL, did not submit its resolution plan on June 4 and rather sought at least seven days' extension to sweeten its offer for both homebuyers and bankers.
NBCC, however, submitted its resolution plan on June 4.
Sources said the CoC members discussed the bid of NBCC.
They also held discussions on whether to accept Suraksha's bid as it was submitted after the deadline.
This was the first time that Suraksha group had sought extension and therefore many members said its offer should also be considered, sources added.
According to sources, Suraksha group had offered more than 2,600 acres land to institutional financial creditors in its last bid submitted on May 18.
Improving the offer, Suraksha has now promised to issue NCDs (non-convertible debentures) worth Rs 1,200 crore to banks, taking its total offer to nearly Rs 7,800 crore.
For homebuyers, the company has reduced the timeline of completion of some projects, wherever feasible.
Moreover, Suraksha group will immediately infuse Rs 300 crore if its bid is approved by the CoC to ensure construction works are not hampered till the resolution plan gets approved by the National Company Law Tribunal (NCLT).
Last week, financial creditors of embattled JIL decided to give time till June 4 to NBCC and Suraksha group to submit their final bids.
In its meeting held on May 24, the CoC decided to defer the voting process on the Suraksha group's bid and conduct voting process for allowing both parties to submit their final offers.
On May 20, the CoC had decided to put Suraksha group's offer to vote and rejected NBCC's bid citing non-compliance related to its proposal for dissenting creditors.
NBCC had protested against its bid being declared as non-compliant.
This is the fourth round of the bidding process in the matter of JIL bankruptcy case.
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 insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids be invited only from NBCC and Suraksha.
Then 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 March 2020, NBCC had got approval from the NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later 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 to extend the timeline for finding a buyer for JIL.