PSU Watch logo

| NCL inks MoU with CIL, NTPC JV for installation of 50 MW solar power PV project |   | ‘SBI collected Rs 300 crore from zero balance accounts for certain services in 5 years |   | Power consumption grows nearly 47% to 28.34 BU in the first week of April |   | Centre may redraw bank recapitalisation plan in wake of new challenges |   | Rise in Covid cases to delay demand recovery in global oil market: ICICI Securities Report |   | IRSDC invites e-RFP for Bijwasan railway station development |  

Jaypee Infratech’s lenders, homebuyers reject Suraksha Group’s offer

PW Bureau

While 41 percent of the members of the CoC voted against the proposal, 23 percent were in favour. The remaining 35 percent had abstained from voting

New Delhi: Jaypee Infratech’s Committee of Creditors (CoC), which comprises of the beleaguered real estate firm’s lenders and homebuyers, rejected Suraksha Group’s offer on Friday, sources said. The voting on the bid had started on April 30 and was supposed to close on May 3.

Only 23% favoured Suraksha’s bid

While 41 percent of the members of the CoC voted against the proposal, 23 percent were in favour. The remaining 35 percent had abstained from voting. As much as 66 percent votes were required for acceptance of a bid.

Does this improve NBCC’s chances?

The news comes just two days after state-run NBCC secured approvals from the government and wrote a letter to Jaypee’s lenders to reconsider its revised bid. Homebuyers too had demanded on Thursday that NBCC’s bid should be reconsidered as they do not have faith in private companies anymore. Representatives of nine homebuyers associations of Jaypee Infratech’s housing projects in Noida had said that Jaypee group promoters were interfering in the insolvency proceedings to regain control of the firm. They also alleged that the Interim Resolution Professional (IRP), appointed by the court, were taking the side of Jaypee Group.

Here’s a catch

However, NBCC may be back in the race but its bid will be considered only if the CoC decides to take it up. A minimum of five-days’ notice should be given to call a CoC meeting, as per Insolvency and Bankruptcy Code (IBC) guidelines. However, Jaypee Infratech does not have time as the 270-day deadline under IBC expires on May 6, giving the lenders a small window to clear the resolution or go for liquidation.