The race for Jaypee Infratech ended in a photo finish, with 98.66 per cent of the Committee of Creditors voting in favour of Suraksha group’s resolution plan while the resolution plan of Suraksha’s rival, NBCC India, received 98.54 per cent of the CoC votes.
Both plans were put for voting separately and the narrow results between the two plans is leading to speculation that NBCC India may move the court again. All banks voted in favour of both plans.
Jaypee Infratech, which owns Delhi-Agra Expressway and land on both sides of the expressway, was referred to the National Company Law Tribunal (NCLT) in August 2017 under the IBC (Insolvency and Bankruptcy Code) 2016 after it defaulted on loans amounting to Rs 22,600 crore. Since then litigation by various stakeholders, including that by former promoters and home buyers, apart from the CoC’s flip-flop, delayed the entire debt resolution process. The company had earlier received interest from JSW, Vedanta and the Adani groups but all withdrew from the process.
The race was finally between Suraksha and NBCC India, who are both interested in developing the land around the project.
On June 7, Suraksha group had sweetened its offer for JIL by Rs 1,298 crore to Rs 7,736 crore for the financial lenders and promised to bring in additional interim funding of Rs 300 crore to build houses faster for Jaypee customers.
NBCC India, on the other hand, had offered 100 per cent shareholding of the land bank company with 1,900 acres to the financial creditors who had agreed to the resolution plan. NBCC also agreed to transfer 90 per cent stake in the Expressway SPV including concession rights of Yamuna Expressway and land.
The offer will include 4,660 acres of expressway land and 137.85 acres of commercial land for development of facilities along the Yamuna Expressway. NBCC also offered additional 100 acres, to be earmarked for payment to be made to the homebuyers on account of past delay penalty in a pro rata manner.
The home owners have been waiting for over 11 years to get keys to their homes and have moved the Supreme Court to get a seat on the CoC.