Financial creditors and homebuyers on Wednesday approved Mumbai-based Suraksha group's proposal to take over debt-laden Jaypee Infratech Ltd (JIL). With this development, the hopes of homebuyers, who have been waiting to get possession of their flats for years, have been raised.
On June 10, the Committee of Creditors (CoC) had put to vote the resolution plans of Suraksha group and NBCC Ltd for acquiring Jaypee Infratech Ltd under the Insolvency and Bankruptcy Code (IBC). The e-voting for the bids had commenced on June 14.
The voting process took 10 days and in the end, 98 per cent of votes were in favour of the Suraksha group's proposal.
"Suraksha group has won the bid with 98.66 per cent votes," JIL's Interim Resolution Professional (IRP) Anuj Jain told PTI. "It got 0.12 per cent more votes than NBCC," he added.
Twelve banks and more than 20,000 homebuyers have voting rights as part of the Committee of Creditors (CoC). Homebuyers and creditors have 56.63 per cent and 43.25 per cent voting rights, respectively. While fixed deposit holders have 0.13 per cent voting rights.
In the voting process, at least 66 per cent of votes were required for the approval of the bid, which the Suraksha Group got. However, the road is still not clear for the firm as their offer still has been cleared by the National Company Law Tribunal (NCLT).
Lenders had submitted a claim of Rs 9,783 crore. Suraksha group offered to lenders over 2,500 acres of land and nearly Rs 1,300 crore via the issue of non-convertible debentures.
This was the fourth round of bidding to find a buyer for debt-ridden JIL, which had gone into Corporate Insolvency Resolution Process (CIRP) in August 2017.
In the first round of insolvency proceedings, the Rs 7,350-crore bid of Lakshadweep Investments and Finance Pvt Ltd, which is part of the Suraksha group, was rejected by lenders. The CoC had junked the bids of both Suraksha Realty and NBCC in the second round held in May-June 2019.
The matter then reached the National Company Law Appellate Tribunal (NCLAT) and ultimately the Supreme Court. In November 2019, the SC ruled that revised bids be invited only from NBCC and Suraksha.
A month later in December 2019, the CoC gave its nod to the resolution plan of NBCC in the third round of bidding. NBCC even got approval from the NCLT for acquiring JIL in March 2020, however, the order was challenged in the NCLAT and later in the Supreme Court.
On March 24, 2021, the apex court had directed that fresh bids be invited from Suraksha Group and NBCC.Also Read: Bid to acquire Jaypee Infratech compliant, backed by govt, PSU: NBCCAlso Read: Jaypee Infratech's IRP files application before SC; seeks deadline extension till July 7
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today