Voting begins on NBCC bid for Jaypee Infratech buyout

New Delhi, May 16 

Homebuyers and lenders of debt-laden Jaypee Infratech today started voting on state-owned NBCC’s bid to acquire Jaypee Group’s realty firm and complete the construction of over 20,000 flats.

The voting process will end on Sunday and the outcome would be declared on May 20.

The financial creditors would vote for the second time on the resolution plan for Jaypee Infratech, a subsidiary of Jaiprakash Associates Ltd (JAL). On May 3, the financial creditors rejected Mumbai-based Suraksha Realty’s bid through voting process.

As many as 13 banks represent 40.71% voting rights in the Committee of Creditors (CoC) while over 23,000 homebuyers have around 59% vote.

A majority of homebuyers are likely to vote in favour of the NBCC’s bid but many also fear that lenders may reject it as they do not want to take up to 60% haircut against their claim of Rs 9,782 crore, sources had said.

Earlier this week, the CoC decided to put on vote the revised offer of NBCC, with homebuyers favouring the voting process while bankers dissenting.

Bankers had opposed putting the NBCC’s bid to vote and pitched for further negotiations. Banks even made a plea before the National Company Law Appellate Tribunal (NCLAT) for a stay on the voting process, but did not get relief.

In its revised offer, NBCC has proposed infusion of Rs 200 crore equity capital, transfer of 950 acres worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats construction by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.

The bankers’ opposition came against the backdrop of NBCC on Monday ruling out dilution of certain conditions, including exemption from tax liability, in its revised offer. — PTI