Jaypee Infra lenders reject proposal to appoint new RP for insolvency process

Lenders of bankruptcy-bound Jaypee Infratech have rejected a proposal to appoint Vijaykumar V Iyer as new resolution professional (RP).

The Committee of Creditors (CoC) of Jaypee Infratech Ltd met on October 17 to vote on various proposals.

In a filing to the BSE, Jaypee Infratech informed that the proposal to appoint Iyer was rejected as only 57.2 per cent voted in favour as against the required 66 per cent.

The proposals to appoint Deloitte Touche Tohmatsu India LLP to assist the (RP) and approve fee of RP were also rejected.

Lenders also did not accept resignation of seven independent directors.

However, the CoC approved Form G (Invitation for expression of interest).

Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to mange the company's business, who later invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech.

However, in May this year, lenders of Jaypee Infratech rejected the Rs 7,350 crore bid by Lakshadweep, as they found it inadequate.

Lakshadweep is a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.

Jaypee Infratech has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are -- IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Ltd.

Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to NCLT as per the order of the Supreme Court that has now directed to start a fresh bidding process.