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NCLAT annuls lenders' voting on NBCC's bid to acquire Jaypee Infratech's

Infra News - Published on Mon, 20 May 2019

Image Source: nclat.nic.in
ETRealty reported that the National Company Law Appellate Tribunal has annulled the voting by Committee of Creditors representing Jaypee Infratech’s lenders on state-owned NBCC's bid to acquire the beleaguered company. Hearing a plea by IDBI Bank, a key lender to Jaypee Infratech, seeking a stay or annulment of the voting process, a three-member bench of the NCLAT on Friday asked the financial creditors to conduct a fresh voting from May 31. IDBI Bank had opposed the state-run company’s for the debt-hit company terming it as a conditional offer. The bench has also allowed CoC to renegotiate with the sole bidder, NBCC India, on its offer.

On Thursday, home buyers and financial creditors of Jaypee Infratech started voting on NBCC's proposal to acquire Jaypee Infratech through insolvency resolution process. The voting process was to end on Sunday and the outcome declared on May 20.

According to the Friday’s order, the CoC may approve the plan if it is in accordance with law, but in case of rejection they cannot pass it until the NCLAT approves the rejection of the bid. The NCLAT also allowed nine homebuyers' associations to file intervention application.

Meanwhile, the Allahabad bench of NCLT has allowed debt-stressed realty developer’s insolvency resolution process, which was scheduled to come to an end on May 6, to continue until May 21. This had paved way for the CoC to consider NBCC’s revised bid to acquire Jaypee Infratech.

Source :

Posted By : Rabi Wangkhem on Mon, 20 May 2019
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