The National Company Law Appellate Tribunal (NCLAT) heard the Jaypee Infratech case today and hinted at a modification of the NBCC bid to suit interests of all stakeholders.
The NCLAT has given much-needed clarity as far as deadlock is concerned over Jaypee Infratech’s Insolvency and Bankruptcy Code (IBC) case.
Keep in mind that the lenders had opposed, very clearly, the bid by NBCC for a number of reasons. One is that there were too many siders that NBCC had attached in terms of potential tax liabilities in the future in terms of clearances that they had to get. Therefore, subject to all clearances the lenders were not happy, they had voted against it and that is why the bone of contention was that once the NBCC’s offer is rejected, what’s next?
That is the question the NCLAT tried to answer today. The NCLAT said that the NBCC offer, on many fronts, looks promising and as far as all stakeholders are concerned, NBCC did a balancing act and to achieve that balancing act even further, the NCLAT has said that it’s important for a representative of lenders as well as representatives of NBCC to come before the court and for them the NCLAT to amend it, to modify in the interest of all the stakeholders to make it more palatable.
Having said that the NCLAT was also very sharply critical of what the NCLAT call ‘backdoor negotiation’ with the third party which happens to be Adani in this case.
Therefore, the NCLAT laying out the roadmap clearly that they are still for the NBCC bid, they still will be batting for them, they still will be looking to modify it to suit the interest of the lenders and that exercise is scheduled to happen on July 17 – that’s when the hearing will resume in this case.