Mumbai-based Suraksha group on Wednesday received the approval of financial creditors and homebuyers to takeover debt-laden Jaypee Infratech Ltd (JIL), according to news agency PTI.
The 10-day-long bidding process on the takeover proposals submitted by NBCC and Suraksha group ended on Wednesday afternoon. More than 98% of the votes were in favour of Suraksha group’s bid.
“Suraksha group has won the bid with 98.66 per cent votes,” JIL’s Interim Resolution Professional (IRP) Anuj Jain told PTI.
It got 0.12 per cent more votes than NBCC, he added.
On the other hand, NBCC bid gets 98.54% of votes, only marginally lower than Suraksha Group.
Suraksha Group offered 2,552 acres of land to secured financial creditors with fair value of ₹6,456 crore. ₹1,280 crore as instruments to secured finacial creditors and FD holders offered ₹29 crore repayment.
The group will infuse ₹3,000 crore working capital to finish homebuyers project to complete project in 40 months.
Commenting on the outcome of the CoC’s decision, a spokesperson for Suraksha group said: “We humbly thank all the stakeholders including the Government of India, Hon’ble Supreme Court and entire Judiciary, Banks and Institutions, all Homebuyers, Public Depositors, YEIDA and their legal counsel, IRP and his team, Committee of Creditors and all their advisors for their relentless efforts towards reviving the world-class residential Jaypee Infratech project, and express our gratitude towards them for bestowing faith in execution capabilities of Suraksha. Thanks to healthy competition and fair process conducted by IRP and CoC.”
“We are committed to the homebuyers, and assure them with accelerated construction work in all phases leading to faster deliveries as promised in our resolution plan,” the spokesperson added.
A successful resolution of JIL will provide a big relief to over 20,000 homebuyers across various housing projects launched by the realty developer in Noida and Greater Noida (Uttar Pradesh).
As many as 12 banks and more than 20,000 homebuyers have voting rights in the Committee of Creditors (CoC). Homebuyers and creditors have 56.63 per cent and 43.25 per cent voting rights, respectively. Fixed deposit holders have 0.13 per cent voting rights.
Lenders have submitted a claim of RS 9,783 crore.
This is the fourth round of the bidding process in the matter of JIL bankruptcy case. JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
The total admitted claims of the banks is ₹9,782 crore.
In the first round of insolvency proceeding, the ₹7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
In November 2019, the Supreme Court ordered that the revised bids be invited only from NBCC and Suraksha. In December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
In March 2020, NBCC got approval from the NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later in the Supreme Court, which on March 24 this year, ordered that fresh bids should be invited only from NBCC and Suraksha.
The apex court had also directed that the resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL.
With inputs from PTI
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