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Debt-laden Jaypee Infratech's lenders turn down NBCC's takeover bid

Apart from NBCC India, the Adani group also reportedly made an unsolicited, non-binding bid to acquire Jaypee Infratech

Aashish Aryan & Karan Choudhury  |  New Delhi 

Jaypee Infratech
Jaypee Infratech

Lenders to debt-ridden real estate firm have turned down the proposal submitted by (India) to acquire the company, sources said.

While the exact percentage of votes in favour and against the takeover plan was not disclosed due to the National Company Law Appellate Tribunal (NCLAT) order, sources said the bid possibly has not mustered the requisite nod of two-thirds of the lenders and buyers. The lenders are also likely to opt for a fresh round of bidding and will consider new expression of interest from other than India, sources told Business Standard.

“While nothing can be said with certainty, it looks like there is going to be a re-bid. New players would be added in the mix and the process would again be started,” said a source close to the proceedings, adding that all 13,000 homebuyers as well as all banks voted on Monday.

Apart from NBCC India, the group also reportedly made an unsolicited, non-binding bid to acquire The group is ready to infuse up to Rs 1,700 crore to expedite the construction of stuck housing projects and deliver flats to home buyers, reports said.

Earlier on Monday, the NCLAT had asked the resolution professional (RP) to place before it and not the (NCLT) the decision of the Committee of Creditors (CoC). While clarifying that the lenders to were free to vote against NBCC’s plan, the appellate tribunal also said the votes of those lenders, who were not present during voting, would not be counted.

“We have not said do not vote against (NBCC plan). We have said the CoC may not file the final report on the decision, if it is rejected. We also made it clear that if any of the financial creditors remain absent during voting, their voting percentage shall not be counted for the purpose of counting voting share,” a three-member NCLAT Bench led by chairperson Justice S J Mukhopadhaya said.

The RP of is likely to submit to the NCLAT only a detailed break up of how each lender to the debt-ridden real estate firm voted on proposals submitted by NBCC and others, sources close the development said. The report of the RP will not contain details of whether any particular plan has been approved or rejected, the sources said.

On May 30, the CoC of Jaypee Infratech had decided to put NBCC’s bid to vote even as bankers had reservations against the proposal, due to certain conditions and concessions put forward by the state-owned firm. The voting process that started on May 31 concluded on Monday.


With inputs from Veena Mani & PTI

First Published: Tue, June 11 2019. 02:16 IST
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