What was the outcome of Jaypee Infratech’s CoC meeting?
A decision on whether the CoC should consider the bids submitted by Adani Group and NBCC will be taken after a hearing in this matter in the NCLAT on July 2
June 20, 2019
Debt-ridden real estate firm Jaypee Infratech’s Committee of Creditors, which consists of homebuyers and lenders, met on Thursday to assess the ongoing insolvency proceedings and take a call on the future course of action. However, sources said that no decision was taken on the way forward.
A decision on whether the CoC should consider the bids submitted by Adani Group and NBCC will be taken after a hearing in this matter in the National Company Law Appellate Tribunal (NCLAT) on July 2.
NBCC could still be in the fray
Earlier, the NCLAT had said on June 10 that it did not bar lenders from voting against state-owned NBCC’s resolution plan. It had also asked the Interim Resolution Professional (IRP) of Jaypee Infratech, Anuj Jain, to report the outcome of the voting process to the tribunal.
In the voting undertaken by the CoC, the body had voted against NBCC’s bid to acquire the debt-ridden real estate firm. Most homebuyers had voted in favour of the NBCC bid. However, the exact percentage of votes against and in favour of NBCC is not known.
The voting rights
In bankruptcy proceedings, lenders have the right to vote for or against a resolution plan. However, in the case of real estate firms, homebuyers also get voting rights that are at par with the lenders. They have a 60 percent vote share, while banks have the rest. For the approval of any resolution plan, at least 66 percent votes should be in favour.