Jaypee Infra insolvency: Lenders move NCLAT seeking nod to vote against NBCC bid

Lenders of Jaypee Infratech have filed a petition before the National Company Law Appellate Tribunal (NCLAT) to allow them to vote against state-owned NBCC's bid in an ongoing insolvency process, sources said.

The voting on NBCC's bid started on Friday and will continue till June 10.

On Thursday, a committee of creditors (CoC) had decided to put on vote NBCC's bid to acquire the debt-laden realty firm even as the bankers had reservation on the state-owned firm not agreeing to dilute certain conditions in its offer including relief from future tax liabilities.

According to the sources, IDBI Bank-led consortium has approached the NCLAT, seeking that secured financial creditors should be permitted to vote against NBCC's resolution plan or bid.

Lenders have approached the NCLAT to vote against NBCC's bid, as the tribunal had last month barred them from rejecting the offer of the public sector firm.

In their prayer, lenders have also pleaded that Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain and the CoC should be allowed to explore other alternatives. This could include inviting fresh expression of interest and considering bids that already have been submitted by other companies.

Adani group recently made an unsolicited and non-binding bid to acquire Jaypee Infratech. It promised to infuse Rs 1,700 crore to expedite construction of stuck housing projects, besides offering 1,000 acre and Rs 1,000 crore for settlement of dues to lenders, fixed deposit holders and workmen.

Promoters of Jaypee group have also submitted a bid of over Rs 10,000 crore to regain control of the realty firm.

On May 17, the NCLAT had annulled the voting on NBCC's bid and directed the CoC to renegotiate with NBCC by May 30, so that voting could start on May 31.

The appellate tribunal had left it to the CoC to approve the resolution plan of NBCC "if it is in accordance with law."
However, the bench had said, "In case the CoC is not inclined to accept the plan, they will not pass any order of rejection without prior permission of this Appellate Tribunal as the matter relating to their voting share and other financial creditors is pending consideration."