Two independent directors of bankruptcy-hit Jaypee Infratech resign

Jaypee Infratech Ltd, which is facing insolvency proceedings, Monday said that the company's two independent directors -- Keshav Prasad Rau and Basant Kumar Goswami -- have resigned.

While Rau has cited personal reasons for the resignation, Goswami resigned because of his growing age and indifferent health, the debt-ridden firm said in a regulatory filing.

The Interim Resolution Professional (IRP) will place the resignations for acceptance in the next meeting of the Committee of Creditors (CoC).

Last week, Jaypee Infratech -- part of the crisis-hit Jaypee group -- had said that a meeting of the CoC would be held on September 12 but did not mention the agenda.

According to sources, the CoC in its meeting will restart the resolution process and appoint IRP for conducting the fresh bidding process.

Last month, the Supreme Court ordered to invite fresh bids.

The National Company Law Tribunal (NCLT) had last year 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.

Later, Jain 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 with Rs 73.5 bn bid.

However, in May this year, lenders of Jaypee Infratech rejected the Rs 73.5 bn 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.

Lenders did not consider a Rs 100 bn unsolicited offer made by promoters of Jaypee group for paying of debt and completing the unfinished housing project.

Jaypee Infratech has an outstanding debt of nearly Rs 98 bn, of which Rs 43.34 bn 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 apartments.

Jaypee Infratech currently has about Rs 240 bn worth assets, including land parcels, Yamuna Expressway and a hospital, sources had earlier said.

Jaypee Group had submitted Rs 7.5 bn 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 apex court.