Jaypee Infra insolvency: Suraksha ARC objects to NBCC's post-deadline offer

CoC to meet today as NBCC sweetens Jaypee Infra offer

The committee of creditors (CoC) of Jaypee Infratech is set to meet on Thursday to consider the resolution plans submitted by Suraksha Asset Reconstruction Company (ARC) and NBCC India even as Suraksha ARC objected to the post-deadline offer made by its rival late on Tuesday night.
 
In its new offer, government-owned NBCC has increased its offer to Rs 5,248 crore from Rs 4,873 crore offered earlier, as compared to the Rs 6,984-crore package offered by Suraksha ARC. 
 
As the NBCC’s offer came after the 4 pm Tuesday deadline set up by CoC, Suraksha ARC shot off a letter to the CoC saying NBCC’s new offer should not be taken into account, a banker close to the development said.
 
In a communication to the CoC, Suraksha ARC said the resolution professional and the CoC members must ensure the resolution plan presented by NBCC is compliant with the provisions of the insolvency code and in accordance with the Supreme Court (SC) judgment (dated March 24, 2021), especially in regard to payment to the dissenting financial creditors. The dissenting creditors were earlier allowed by the SC to enforce existing securities, however, NBCC’s latest offer gives them non-convertible debentures (NCDs) which is not in the spirit of the verdict, Suraksha said.
 
The voting on both the proposals is expected to start in May last week and will be open for a week.

 
Asking the CoC to ensure that the process is fair and unbiased, Suraksha ARC said the plans presented to the CoC should be compliant with the provisions of the IBC code as interpreted in the SC so that any future challenges can be mitigated in the interest of homebuyers who have been waiting for the past 8-10 years.
 
Jaypee Infratech was sent for debt resolution in 2017 under the Insolvency and Bankruptcy Code (IBC) 2016 after it defaulted on debt worth Rs 22,000 crore and failed to construct houses for its customers. The company owns Yamuna Expressway connecting Delhi to Agra and the land around the project.  The company’s insolvency process has been mired in litigation since then. A home owner said some of the creditors were unduly trying to support NBCC by allowing several extensions which goes against the IBC process.
 
“We will move court again if we find proper process is not followed,” said a customer asking not to be named. The homebuyers were given a seat in the CoC by the SC. Both NBCC and Suraksha have offered to deliver the project within 42 months of acquisition of the company.