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Jaypee Infratech CoC to meet on June 20 to decide future course of action

Sources have said that the CoC is meeting to discuss the status of the ongoing insolvency proceedings and the way forward
New Delhi: Jaypee Infratech’s Committee of Creditors (CoC), which consists of banks and homebuyers, will meet on June 20 to assess the ongoing insolvency process and take a call on the future course of action, Interim Resolution Professional (IRP) Anuj Jain said in a regulatory filing. The decision comes days after the debt-ridden firm’s CoC rejected state-run NBCC’s proposal.

What is the agenda?

The agenda of the meeting is unknown. However, sources have said that the CoC is meeting to discuss the status of the ongoing insolvency proceedings and the way forward. On June 10, while a majority of lenders had voted to reject NBCC’s bid, homebuyers had voted in favour. The exact percentage of votes in favour of and against NBCC has not been disclosed due to an insolvency court order. But sources have said that the proposal had failed to secure the mandatory two-thirds of the total votes from lenders and homebuyers.

How does the voting process work?

Homebuyers represent nearly 60 percent of voting rights and banks have the rest. For any resolution plan to be approved, at least 66 percent of the votes need to be in favour. Lenders have opposed NBCC’s bid because the state-run firm has sought certain concession related to future tax liabilities and approval from development authority YEIDA for transfer of land and Yamuna Expressway.