Suraksha ARC Wins Jaypee Infratech Bid By A Small Margin—BQ Exclusive
Suraksha Asset Reconstruction Company has won a majority of creditor votes in the resolution of Jaypee Infratech Ltd., two people in the know said. According to the two people, Suraksha has won by a small margin, compared with the votes garnered by competitor NBCC Ltd.
Suraksha ARC won 98.66% of the financial creditor votes in a nine-day voting process which concluded on Wednesday. In comparison, NBCC received 98.54% of the votes. Under the voting process, creditors could vote for both proposals, with the one receiving the higher vote share deemed winner.
Most financial creditors voted for both bidders, with two financial institutions voting in favour of Suraksha ARC alone, helping it win the bid, the people cited earlier said.
“We’re committed to the homebuyers, and assure them with accelerated construction work in all phases leading to faster deliveries as promised in our resolution plan,” a spokesperson for Suraksha ARC said in a statement. "Further, we look forward to the continued support of all stakeholders in our journey to bring back the beleaguered real estate project to fulfill the dreams of thousands of homebuyers.”
The current vote brings to end the roller-coaster round of bidding for the resolution Jaypee Infratech, which was called for by the Supreme Court in March. At the time, the apex court had found that NBCC's plan, which lenders had approved during the third round of bidding was not compliant with the Insolvency And Bankruptcy Code.
After multiple bids, negotiations, rebids and complaints by both bidders, the plans were put to vote on June 14.
Under its plan, Suraksha ARC has proposed to infuse Rs 125-crore worth equity into Jaypee Infratech. It also said that it will avail Rs 3,000 crore in loans to complete construction of the residential units which have been pending for over a decade. It plans to finish construction work within 42 months after taking over Jaypee Infratech.
The spokesperson for NBCC didn’t immediately respond to messages for comment. Anuj Jain, the resolution professional for Jaypee Infratech, declined to comment.