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Jaypee Infratech finds NBCC's bid conditional and non binding

Infra News - Published on Tue, 14 May 2019

Image Source: Business Today
Realty firm Jaypee Infratech's Interim Resolution Professional has opined that state-owned NBCC's revised bid was conditional and non-binding, which ran contrary to terms of the insolvency proceedings, sources said. The Committee of Creditors is scheduled to meet on Thursday (May 9) to discuss NBCC's revised offer to acquire debt-laden Jaypee Infratech. The public sector unit has proposed infusion of INR 200 crore equity capital, transfer of 950 acres of land worth INR 5,000 crore to banks and completing construction of flats by July 2023 to settle an outstanding claim of INR 23,723 crore of financial creditors.

Sources said that NBCC has put several conditions for the implementation of its plan, including a demand to extinguish an estimated income-tax liability of Rs 33,000 crore over a period of 30 years arising out of the transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Group.

The IRP Anuj Jain has written to the CoC that NBCC's revised bid is conditional as the state-owned firm has stated that the plan will not be binding on it unless key reliefs such as extinguishing of income tax liability and a dispensation from seeking consent of YEIDA for any business transfer is granted. The IRP pointed out that the insolvency process approved by the CoC in December last year provided that the resolution plans from potential bidders should be binding and non-conditional.

The court-mandated deadline for completing the resolution plan for Japyee Infratech ended on May 6 and the CoC has sought an extension of the deadline. The Allahabad bench of the NCLT has posted the matter for hearing on May 21.

The CoC had on May 3 rejected a bid of Mumbai-based Suraksha Realty group, which was the lone contender after NBCC's revised offer was rejected in absence of approvals from the government departments.

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Posted By : Rabi Wangkhem on Tue, 14 May 2019
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