Jaypee Infratech Promoter Proposes To Clear Debt, Build All Pending Flats In Three Years
Promoters of debt-ridden Jaypee Infratech Ltd. told National Company Law Appellate Tribunal that they will repay all creditors without any haircut and complete pending residential projects within three years.
The NCLAT reserved its order over exclusion of litigation period from the ongoing Jaypee Infratech insolvency resolution process. A two-member bench headed by Chairman Justice SJ Mukhopadhaya asked Jaiprakash Associates Ltd., the promoter of Jaypee Infratech, to file written submissions over exclusion of time frame.
NCLAT posted further hearing in the Jaypee Infratech case for July 29.
Lenders are requesting to exclude the 250 days from Sept. 17, 2018, to June 4, 2019, from the stipulated period for Corporate Insolvency Resolution Process, as this time was taken by the National Company Law Tribunal to decide on the voting rights of the homebuyers.
During the NCLAT proceedings, Jaiprakash Associates offered to pay 100 percent of the outstanding debt to the creditors without any haircut. It also offered to complete the construction of the remaining flats within three years and hand over to the original allottees.
Jaypee Infratech went into insolvency in August 2017 after NCLT admitted an application filed by an IDBI Bank Ltd.-led consortium. It owes Rs 9,800 crore to 13 banks and has to build 20,000 flats and hand them over to home buyers.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders. Later, in October 2018, the insolvency resolution professional started the second round of bidding process.
Jaiprakash Associates has submitted its bid to regain control over its subsidiary Jaypee Infratech. Business conglomerate Adani Group too has submitted unsolicited bid.
On Monday, Jaypee Infratech shares fell 1.42 percent to Rs 1.39 apiece on the BSE while those of Jaiprakash Associates shed 1.56 percent to Rs 2.53 each. The benchmark Sensex lost 0.80 percent to end the day at 38,031.13 points.