The creditors of the debt-ridden realty firm Jaypee Infratech along with the IDBI bank that led-consortium are scheduled to meet on 20th June. In this meeting, the current situation will be assessed regarding the ongoing insolvency procedure and to decide the future course of action.
The meeting is called after the majority of banks casted vote against the NBCC a state-owned Construction company who made a bid to acquire this realty firm.
In a regulatory filing, Anuj Jain, the Interim Resolution Professionals [IRP] of the Jaypee Infratech group informed that a meeting of CoC i.e. the Committee of Creditors is scheduled to take place on 20th June 17, 2019. However, he didn’t make any revelation about the meeting agenda.
According to the sources, the creditors will discuss the status of the insolvency proceedings that are currently underway and the future course of action. On 10th June, majority of lenders casted vote against the bid submitted by the NBCC but the homebuyers are in favour of the National Building Construction Company to take over the debt-ridden realty firm, sources informed.
On 19th June, NCLAT i.e the National Company Law Appellate Tribunal (NCLAT) gave a clarification that it did not bar lenders from voting against NBCC’s resolution plan. The IRP Anuj Jain was also directed to submit the result of voting process directly by NCLAT. The tribunal also scheduled the next date of hearing to 17th July instead of 2nd July.
The voting results are yet to be disclosed and the sources said that the NBCC is unlikely to get the two-third vote of the lenders and the buyers.
In case of the bankruptcy proceedings related to the Indian real estate, the homebuyers also get a chance to cast vote along with the lenders. Here 13 banks and more than 23,000 homebuyers have voting rights in the CoC of Jaypee Infratech.
The homebuyers represent approximately 60 percent of the voting rights and the banks have the remaining percent of voting rights. The minimum of 66 percent votes are required to get any resolution plan approved.
Earlier, the banks had raised their concerns over NBCC’s certain clauses in the bid penetrating to the future tax liabilities and sanctions from the development authority YEIDA to get land transfer.
This is the second time that the bidding process has taken place to acquire the debt-ridden Jaypee Infratech that went bankrupt in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.