The committee of creditors of Jaypee Infratech on Friday voted in favour of a resolution to invite revised bids from both the suitors, state-run NBCC and Suraksha Realty-Lakshdeep Investments consortium, people in the know told CNBC-TV18.
Earlier this week, the committee of creditors (CoC) had decided to defer scheduled voting on Suraksha Group’s offer for the company after NBCC submitted an addendum to its resolution plan claiming to satisfy lenders’ concerns on its non-compliance with insolvency law provisions, CNBC-TV18 had reported.
The CoC has now voted in favour of allowing “a final opportunity” to both bidders, by way of additional time of 7 days up to June 4 to submit their revised plans, said people familiar with the matter.
98.54 percent of the CoC voted in favour of this resolution to allow NBCC, and Suraksha Group more time to submit revised offers.
Additionally, the insolvency resolution professional of the company, Anuj Jain, will file an application in the Supreme Court to allow 30 days’ more time until July 7, 2021 to complete the corporate insolvency resolution process (CIRP), CNBC-TV18 has learnt.
Among other matters, the CoC also voted on a tie-breaker formula in case both the resolution plans get equal votes.
“The Resolution Plan having highest votes (voting share) of assent from class of creditors i.e. Allottees and Fixed Deposit Holders combined, to be declared as the Successful Resolution Plan,” the lenders decided.
90.74 percent of the creditors voted in favour of this tie-breaker formula. Allottees are the 20,583 homebuyers of Jaypee Infra in this case.
CNBC-TV18 had earlier reported that NBCC submitted an unsolicited addendum to its resolution plan on May 22, two days after the CoC decided to put Suraksha Resolution Plan to vote as NBCC was found non-compliant under IBC.
Lenders also cleared a resolution to convene a meeting of the CoC at a very short notice of 24-hours if needed as against the minimum 48-hours notice needed under the insolvency and bankruptcy code, CNBC-TV18 has learnt.
“The question arose in the (May 24, 2021) CoC meeting whether the unsolicited addendum submitted after the decision taken in CoC meeting held on 20.05.2021 should be accepted by the CoC. Some institutional financial creditors of Jaypee Infratech Limited, in the meeting of CoC held on 24 May 2021, proposed that the addendum should be taken on record as rejected on the ground of delay of 2-day delay may be seen as unduly harsh,” the minutes of the lenders meeting showed.
Following this, lenders had decided to put to vote the resolution to consider inviting revised bids. CNBC-TV18 has reviewed a copy of this document.
The creditors' committee will hold the next meeting on June 7.
Both NBCC and Suraksha Group had earlier indicated they may take legal recourse if they feel the process is not run fairly and transparently, as adjudged by them.
Jaypee Infratech is facing claims of Rs 9,782 cr from institutional financial creditors, Rs 12,711 cr from homebuyers and Rs 464 cr from operational creditors under IBC.
First Published: IST