Nearly all lenders approved state-run NBCC (India) Ltd.'s bid for Jaypee Infratech Ltd., paving the way for completion of apartments for more than 22,000 homebuyers.
NBCC's resolution won 97.36 percent of the votes of the Committee of Creditors, according to results of e-voting—BloombergQuint has reviewed a copy of the document. Homebuyers had 57.8 percent of the vote and the winning bid needed 66 percent.
Jaypee Infratech, which owes lenders more than Rs 9,780 crore and operational creditors Rs 464.2 crore, had left homebuyers in the lurch as it struggled to complete homes. That prompted the central bank to include it in the first 12 large corporate accounts referred for resolution under the Insolvency and Bankruptcy Code in June 2017.
After a failed resolution in the first 270-day deadline, the Supreme Court intervened to prevent liquidation in the interest of homebuyers and ordered fresh bidding twice. In the last round, NBCC and Suraksha Asset Reconstruction Company Ltd. submitted their final plans on Dec. 7. The resolution professional conducted e-voting between Dec. 10 and 16.
NBCC offered to:
- Repay institutional financial creditors in full—around Rs 9,782.6 crore.
- Provide flats to all homebuyers.
- Repay fixed deposit holders.
Suraksha ARC offered to:
- Make upfront payment of Rs 175 crore to financial creditors.
- Securitise 2,200 acres of land worth over Rs 9,600 crore through debt instruments.
- Build apartments for homebuyers in three years.
Abhishek Dubey, secretary, Kosmos Association of Jaypee Infra Homebuyers, told BloombergQuint that they want the resolution professional to swiftly hand over the project to NBCC within next three months.
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