NCLT approves NBCC bid for Jaypee Infratech

The resolution professional for Jaypee Infratech, Anuj Jain, had filed a plea before the NCLT to approve NBCC's bid. Jaypee Infratech's creditors, including both financial and homebuyers, had approved the bid by the NBCC, which in turn has promise...

The National Company Law Tribunal (NCLT) has approved the resolution plan of NBCC (India) to acquire the debt-hit realty developer Jaypee Infratech, three persons aware of the matter said. The new company will get R 750 crore of Jaiprakash Associates Limited, for which NBCC had put a walk away condition.

According to people aware of the matter, two special purpose vehicle will also be formed where lenders, including the homebuyers will be a part.

“NCLT has ruled that R 750 crore is part of the resolution plan and has approved NBCC’s resolution plan with some modifications,” said a person aware of the matter.

The National Buildings Construction Corporation (NBCC) in its resolution plan, had put in a condition saying that it has the right to withdraw from the process in case R 750 crore along with the interest is not made available to it.

Jaypee had defaulted on R 526-crore loan by the bank. Its total debt was R 9,800 crore to IDBI Bank-led consortium. Law firm Cyril Amarchand is representing consortium of lenders in the matter, which also include homebuyers.

On December 18, the Committee of Creditors (CoC) of Jaypee Infratech had selected NBCC as the winner in the race to acquire the debt-hit realty developer after the lenders and home buyers concluded their voting.

The hearing on the resolution plan started last month with both NBCC and homebuyers looking to get direction on the R 750 crore fund.

Actual construction work on stuck projects is expected to commence in the next six months.

NBCC official said that they have started the work on creation of special purpose vehicle (SPV), hoping positive response from NCLT.

NBCC has sought around three months’ time after to raise money, sourcing agencies for various work related to stuck housing projects and other formalities.

The committee of creditors had termed the walkaway condition by NBCC a ‘commercial risk’ and had decided to vote for NBCC.

The legal counsel to banks and financial institutions had requested NBCC to consider removing the right to walk away from the implementation of the Resolution Plan.




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