On Sunday, Suraksha Group had warned of legal action against CoC as well as the IRP if there was any delay in the scheduled voting process.The insolvency resolution process of Jaypee Infratech (JIL) may get delayed once again. On Monday, the company’s committee of creditors (CoC) deferred the voting process on Mumbai-based Suraksha Group’s offer to acquire the bankrupt firm. The CoC decided to put on vote on May 27-28 whether Suraksha Group and the other bidder in the fray, state-owned NBCC, should be given a week’s time to submit their revised bids, according to filings made with the stock exchanges on Monday. However, no reason for deferral of the voting process was given.
If the proposal to give a week’s time to both the parties to submit their revised bids does not get the CoC’s approval then, in all probability, Suraksha’s plan will be put to vote, sources said.
As is known, last week, the CoC had rejected NBCC’s bid on the ground that it was non-compliant with certain provisions of the Insolvency and Bankruptcy Code. However, NBCC has objected to this rejection by the interim resolution professional (IRP), Anuj Jain, and questioned his jurisdiction in the matter. Subsequently, it submitted a 14-page addendum to its final bid to clarify concerns raised on treatment of dissenting creditors.
According to the earlier schedule, the voting process on Suraksha Group’s bid was to commence from noon on May 24 and end at 5 pm on May 27.
On Sunday, Suraksha Group had warned of legal action against CoC as well as the IRP if there was any delay in the scheduled voting process.
Sources said that the IRP in his report on NBCC’s addendum, submitted to the CoC on Monday, has reiterated his earlier opinion about it being non-compliant with certain provisions of the IBC.
“The IRP again said that non-convertible debentures (NCDs) to DFCs for payment of liquidation value (LV) is not compliant with provisions of the IBC and CIRP,” sources said. Source also said that lenders are divided over NBCC’s offer, and that majority wanted lenders and home-buyers to again decide whether an extension should be given to consider the offer. In its May 22 clarification, NBCC said, “Even if it is assumed, and only for the purposes of argument that the IRP’s opinion is accurate without in any way concurring with the same, it is seen that DFCs still have the option of accepting the arrangement proposed under this resolution plan for payment of LV owed to them.”
This is the fourth round of the bidding process in the matter of JIL’s bankruptcy case. The company 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 Supreme Court. In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids to be invited only from NBCC and Suraksha group. In December 2019, the CoC, approved the resolution plan of NBCC with a 97.36% vote in favour during the third round of the bidding process. Later in March 2020, NBCC had got an approval from the NCLT to acquire JIL. Homebuyers’ claim amounting to `13,364 crore and lenders’ claims worth `9,783 crore were admitted last year. However, the order was challenged before the NCLAT and later in the Supreme Court, which in March this year ordered that fresh bids should be invited only from NBCC and Suraksha. The apex court had also directed that 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.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
