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Lenders defer vote on Jaypee Infratech winner as suitors allowed two more days to revise bids
Photo Credit: Reuters

Lenders of bankrupt Jaypee Infratech today decided to defer vote on the winning resolution plan, giving two more days to Suraksha Group and state-owned NBCC (India) Ltd for filing revised bids. 

On Friday, VCCircle had reported that, after the fourth bidding round, Suraksha held an edge over NBCC in the lenders’ vote that was to start today and last a couple of days.

The troubled township developer has debt of around Rs 22,600 crore under the insolvency process. 

Last week, Mumbai-based Suraksha offered a resolution plan worth almost Rs 7,000 crore, that’s Rs 1,736 crore more than NBCC’s Rs 5,248 crore plan. 

Suraksha upped its plan by earmarking 1,486 of the proposed 2,651 acres to lenders for dissenting creditors, and setting aside Rs 500 crore for penalty payment to homebuyers. 

Meanwhile, NBCC sent an addition to its earlier offer and sought more time from the lenders late on Friday night. This was rejected by the lenders for non-compliance with Insolvency and Bankruptcy Code (IBC) and Supreme Court orders. 

Rival bidder Suraksha Group had strongly objected to the lenders’ decision to consider fresh submissions by NBCC and warned of legal action against them as well as the interim resolution professional Anuj Jain if voting on the group's offer failed to materialise. 

Jaypee Infratech, a unit of Jaiprakash Associates, was admitted to bankruptcy in August 2017 on a plea by a consortium led by government-backed IDBI Bank over dues worth Rs 4,334 crore. More than 20,000 homebuyers and 13 banks are part of the CoC. 

The total admitted claims stood at Rs 22,613 crore, of which homebuyers’ claims are around Rs 12,000 crore with 53% of voting rights while banks have around 43% of voting rights and claims worth about Rs 9,783 crore. 

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