State-run NBCC (India) Ltd said on Tuesday its revised takeover offer for township developer Jaypee Infratech Ltd has been approved by a majority of the debt-laden company’s creditors.
NBCC said in a stock-exchange filing that it has received a Letter of Intent from the interim resolution professional of Jaypee Infratech that its offer was approved by the developer’s Committee of Creditors (CoC) with a vote share of 97.36%. That’s far higher than the minimum 66% vote share that an insolvency resolution plan requires for approval.
Jaypee Infratech, a unit of Jaiprakash Associates Ltd, had entered insolvency proceedings in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by a consortium led by IDBI Bank.
NBCC had submitted its revised offer for Jaypee Infratech on December 3. Apart from NBCC, a consortium of Suraksha Realty and Lakshdeep Investments & Finance Pvt. Ltd was also in the race to acquire Jaypee Infratech.
The CoC, in its meeting on December 7, had decided to put to vote the offers of both NBCC and Suraksha Realty to acquire the bankrupt realty firm. The e-voting had begun on December 10.
More than 23,000 homebuyers and 13 banks have voting rights in the CoC. The homebuyers’ claim amounts to over Rs 13,000 crore while banks have claimed Rs 9,800 crore. Homebuyers represent about 58% of voting rights while banks have the rest.
This was the third round of bidding process, initiated on the direction of the Supreme Court.
In the first round of insolvency proceedings, the creditors had rejected Suraksha Realty’s Rs 7,350 crore bid last year.
In May, Adani Infrastructure & Developers Pvt. Ltd also threw a spanner by submitted a non-binding offer to take over Jaypee Infratech. But the homebuyers and lenders did not allow Adani’s bid to go through.
After the creditors rejected Suraksha Realty's bid, NBCC was made to revise the offer to buy Jaypee Infratech, but this was also rejected. In August, the appellate tribunal granted 90 more days for fresh bids to buy the debt-laden developer.
In its final proposal, Suraksha Realty had offered lenders an upfront payment of Rs 190 crore and 2,320 acres of land in lieu of debt to lenders.
While NBCC did not offer any upfront payment, it proposed to give 1,526 acres of land to lenders in lieu of debt and has proposed to complete almost 10,000 pending houses of homebuyers within the next three-and-a-half years. It also offered a delay penalty payment of Rs 5 square feet per month to homebuyers.