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Jaypee Infratech creditors' panel to discuss NBCC's bid on May 9

The meeting has been called as creditors on Friday rejected the bid of Mumbai-based Suraksha Realty group

Press Trust of India  |  New Delhi 

Jaypee infratech

The creditors panel of debt-ridden will meet on May 9 to discuss the bid of state-owned Ltd to acquire the realty firm.

The meeting has been called as creditors on Friday rejected the bid of Mumbai-based group, which was the lone contender after NBCC's offer was rejected in absence of approvals from the government departments.

In a regulatory filing, Jaypee Infratech's (IRP) informed that a meeting of committee of creditors (CoC) has been called on May 9.

The agenda of the meeting was not disclosed in the regulatory filing.

However, sources said the panel will discuss the NBCC's bid. The would also discuss the voting result on Surakshs group.

Meanwhile, the court-mandated deadline for completing the resolution process ends on May 6.

Lenders have sought extension of the deadline and the matter is pending before the Allahabad bench of the National Company Law Tribunal (NCLT).

After the rejection of its bid on May 26 by the CoC, received the necessary approvals from the government departments including the Ministry of Housing and Urban Affairs.

had requested the to reconsider its bid on merit.

On May 3, financial creditors rejected Suraksha Realty's bid for the debt-laden firm as the offer was low on upfront cash payment.

Adani Group has also shown interest to acquire and complete over 20,000 delayed flats in

Interestingly, Jaypee Group's promoters too have put in a bid to retain control of the company.

Under the insolvency proceedings Friday, members representing 41.85 per cent of voting rights were against the proposal, while 23.47 per cent were in its favour.

Most of those voting in favour were homebuyers, who hold about 60 per cent of the voting rights in the

The remaining around 34.69 per cent homebuyers abstained from the voting process, which started on April 30 and concluded on Friday.

In 2017, went into insolvency after the NCLT admitted the application by an IDBI Bank-led consortium seeking resolution of the firm.

Jaypee Infratech, which is a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, owes nearly Rs 9,800 crore to financial creditors.

was appointed as the to oversee the affairs of the company and conduct the bidding process to find a buyer for Jaypee Infratech who can complete pending 20,000 flats in Noida,

During the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets as well as liquidation value of about Rs 14,000 crore.

In October 2018, the started a fresh initiative to revive Jaypee Infratech on the NCLT's direction.

To protect lenders interest, NBCC has offered Rs 5,000 crore worth land as well as 100 per cent equity of Yamuna Expressway, the only cash generating asset with Jaypee Infratech.

Chairman Manoj Gaur has promised to infuse Rs 2,000 crore to complete pending apartments over the next four years. The group had submitted a Rs 10,000-crore plan before lenders in April 2018 as well, but the same was not accepted.

Jaiprakash Associates Ltd (JAL), the holding firm of Jaypee Infratech, had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with the NCLT.

First Published: Sat, May 04 2019. 20:39 IST