The Committee of Creditors (CoC) on Thursday decided to consider state-run NBCC Ltd's resolution plan for Jaypee Infra after the Allahabad bench of the National Company Law Tribunal (NCLT) allowed the debt-ridden company to continue the Corporate Insolvency Resolution Process (CIRP) despite the 270-day deadline ending on May 6.
While IDBI Bank had sought a six-month extension, the NCLT has granted Jaypee Infra additional time at least until the next hearing on the matter on May 21.
The CoC, 60 percent of which are homebuyers, sought clarifications from NBCC on its revised offer and decided to convene the next meeting on May 14 to take the final call on putting the NBCC bid to vote, sources told CNBC-TV18.
The revised NBCC bid is being considered by the lenders a week after Suraksha Group’s resolution plan was rejected by the CoC on May 3, with only 23.47 percent of the creditors' committee voting in its favour against the requisite 66 percentage mark.
According to the sources, the NBCC’s bid would be put to vote soon after the next CoC meeting on May 14, if NBCC comes back with required clarifications by then.
NBCC could not initially participate in the bidding due to lack of government approvals, which it managed to secure only after the voting on Suraksha Group’s plan had begun.
Suraksha Group offered Rs 18.55 crore of payment to the secured financial creditors. Its offer includes payment of Rs 23 crore to operational creditors, settlement of Rs 5,000 crore of debt via a land swap deal and completion of the homebuyers’ project within three years, as per sources.
NBCC had offered Rs 1500 crore upfront payment to secured financial creditors, and settlement of Rs 5000 crore of debt via a land swap deal, and completion of homebuyers project within four years, as per their plan reviewed by CNBC-TV18.