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    Jaypee creditors to put NBCC's revised bid on vote today

    Synopsis

    Both home buyers and lenders can vote on the state-owned company’s proposal until June 10.

    JaypeeAgencies
    In 2017, Jaypee Infratech went into insolvency process after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.
    MUMBAI: The financial creditors of Jaypee Infratech have decided to put state-run NBCC India’s revised bid to acquire the debt-laden realty developer on vote from Friday, according to two people aware of the development.

    Both home buyers and lenders to Jaypee Infratech can vote on NBCC’s proposal till June 10.

    “NBCC has not made any major changes to its revised bid. It has now offered to transfer Jaypee Infratech’s unsold residential inventory to lenders at Rs 1,300 crore as against earlier offer of Rs 1,700 crore,” said one of the persons cited earlier.

    Apart from this, NBCC has not made any changes with regards to changes sought by lenders on issues including future taxability and YEIDA land transferability.

    Jaypee Infratech’s insolvency resolution professional Anuj Jain declined to comment on the matter.

    According to reports, Jaypee Infratech’s lenders had recently asked NBCC to sweeten its bid and demanded that it should offer 1,426 acre land instead of 950 acre, besides taking the onus of getting approvals from income tax and development authorities.

    The lenders' consortium, the reports said, had conveyed to NBCC that its bid would be considered favourably if it met the consortium’s five conditions.

    Financial creditors had suggested that NBCC should agree to get approval from Yamuna Expressway Industrial Development Authority (YEIDA) for the land transferability. The lenders had also put a condition with regards to future taxability.

    Meanwhile, Adani Group has made an unsolicited and non-binding offer to acquire Jaypee Infratech and is ready to infuse Rs 1,700 crore to expedite the construction of stuck projects of the company.

    On May 17, the National Company Law Appellate Tribunal (NCLAT) had annulled the voting by Committee of Creditors representing Jaypee Infratech’s lenders on NBCC's bid to acquire the company.

    On a plea by IDBI Bank, a key lender to Jaypee Infratech, seeking a stay or annulment of the voting process, a three-member bench of the NCLAT had asked the financial creditors to conduct a fresh voting from May 31.

    IDBI Bank had opposed NBCC’s bid for Jaypee Infratech, terming it a conditional offer. The bench has also allowed the Committee of Creditors to renegotiate with the sole bidder, NBCC India, on its offer.

    Jaypee Infratech has an outstanding debt of about Rs 9,800 crore.



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    ( Originally published on May 30, 2019 )
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