Insolvency of Jaypee Infratech: the lenders will meet on November 18 to meet the SC address

NEW DELHI: Debt Lenders Jaypee Infratech It will meet on November 18 to carry out the insolvency resolution process after the Supreme Court ordered earlier this month to complete the process within 90 days.

Crisis hit Jaypee Group firm Jaypee Infratech went into insolvency in 2017 after the National Court of Company Law (NCLT) admitted a request from a consortium led by IDBI Bank seeking resolution of the firm.

Jaypee Infratech, a subsidiary of Jaiprakash Associates , has an outstanding debt of almost Rs 9,800 million rupees.

In the first round of insolvency proceedings, the lenders rejected the rupee offer of Rs 7,350 from Lakshdeep, part of the Suraksha Group.

Interim Resolution Professional (IRP) Anuj Jain, in October 2018, started a fresh initiative to revive Jaypee Infratech on the NCLT's direction. In the second round, lenders first rejected bid of Suraksha Realty and then that of state-owned NBCC.

Jaypee Infratech informed exchanges on Tuesday that a meeting of Committee of Creditors (CoC) will be held on November 18, 2019. The agenda for the meeting was not disclosed, but sources said the meeting will discuss way forward.

As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC Committee of Creditors (CoC) of Jaypee Infratech.

In a big jolt to the Jaypee Group, the Supreme Court ordered on November 6 the completion of the corporate insolvency resolution process within 90 days to Jaypee Infratech Ltd and said the revised resolution plan will be invited only by the NBCC and Suraksha Realty.

The apex court had said that the pendency of any other application before the NCLT or NCLAT, including any provisional address, will not be an impediment for the IRP to receive and process the revised resolution plan of the two bidders.

We order the IRP to complete the CIRP within 90 days from today. In the first 45 days, it will be open to the IRP to invite the revised resolution plan only from Suraksha Realty and NBCC, respectively, who were the final bidders and submitted the resolution plan on an earlier occasion and place the revised plans before the Committee of Creditors (CoC), if necessary, after negotiations and submit a report to the contracting authority NCLT within that time, the bank said.

In the second phase of 45 days from December 21, 2019, a margin is provided to eliminate any difficulties and to pass the appropriate orders on the part of the contracting authority, said the superior court.