Millennium Post

NBCC gets nod of lenders and homebuyers to acquire Jaypee Infratech in insolvency process

New Delhi: State-owned NBCC on Tuesday won approval of financial creditors to takeover debt-laden Jaypee Infratech Ltd, rekindling hopes of homebuyers finally getting their promised flats over the next 4 years.

A week-long voting on the takeover proposals submitted by NBCC and Mumbai-based real estate firm Suraksha Realty ended close to midnight, with results going in favour of the state-owned firm with a overwhelming majority of 97.36 per cent favouring it.

This is the third round of bidding process to find a buyer for Jaypee Infratech, which went into Corporate Insolvency Resolution Process (CIRP) in August 2017.

The successful resolution will provide a big relief to over 20,000 homebuyers across various housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh). As many as 13 banks and over 21,000 homebuyers have voting rights in the Committee of Creditors (CoC). Buyers have 57.66 per cent voting rights, fixed deposit holders 0.13 per cent and lenders 42.21 per cent. For a bid to be approved, 66 per cent votes are required.

In a filing to the BSE, Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain informed that NBCC got 57.66 per cent vote of homebuyers and 0.13 per cent of fixed deposit holders. The public sector firm got 39.57 per cent votes of lenders out of total 42.21 per cent votes.

IFCI, which has voting rights of 1.21 per cent, abstained from voting process, while ICICI Bank (1.31 per cent) and SREI Equipment Finance Ltd (0.12 per cent) voted against NBCC's bid.

Suraksha managed to get 2.12 per cent votes as only fixed deposit holders and two lenders -- Axis Bank and The Jammu and Kashmir Bank Ltd -- favoured it.

Out of 21,781 homebuyers that are part of the CoC, as many as 12,147 flat owners voted on NBCC's resolution plan, of which 97.02 per cent were in favour.

After the CoC approval, NBCC's bid has to be approved by the National Company Law Tribunal (NCLT).

On December 7, the CoC decided to put on vote simultaneously the bids of NBCC (India) Ltd and Suraksha Realty to acquire the bankrupt realty firm. The voting process started on December 10 and ended on December 16.

In its bid, NBCC has proposed to complete over 20,000 pending flats in the next three-and-a-half years.

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