New Delhi, Sep 30 (IANS) Reversing its offer on bankrupt Jaypee Infratech’s (JIL)unsold inventory, public sector construction major NBCC may decide to monetise these assets on its own, rather than leaving the exercise for the bankers.
Sources said that the NBCC, in a revised resolution plan to be submitted in the Supreme Court in a week’s time, is likely to make this proposal to resolve the deadlock with the lenders and facilitate early resolution of Jaypee Infratech.
In its earlier offer for the bankrupt developer, the NBCC had offered to transfer Jaypee Infratech’s unsold residential inventory to lenders at Rs 1,700 crore, and then revised it to Rs 1,300 crore.
“Earlier the PSU was seeking money for transferring the stock to the lenders. Now, the NBCC would not give the unsold inventory to them (lenders). It will withdraw that clause,” an official source said.
This decision seems to be another major step towards the ironing out of differences between the lenders and the construction major as the taxation issue already seems addressed after the Centre told the Supreme Court that it would waive taxes, which would have run into Rs 33,000 crore due from Jaypee Infratech, if NBCC was to take over the embattled real estate firm.
Earlier this month, the apex court had asked the NBCC if it was willing to give a revised proposal to complete the stalled projects of JIL, following which the Navratna company agreed to submit a revised proposal.
Asking the NBCC to consider the rights of all the creditors in the plan, the court adjourned the matter for four weeks, extending the status quo on the insolvency proceedings on Jaypee Group’s plea against the National Company Law Appellate Tribunal’s (NCLAT) order till then.
On August 2, the Supreme Court ordered status quo for two weeks on Jaypee Group’s plea against the NCLAT order after it was informed that Parliament had passed the proposed amendments to the Insolvency and Bankruptcy Code (IBC).
Jaypee Group moved the Supreme Court against the NCLAT order, which barred Jaypee Associates, the parent company, from bidding for JIL. On July 30, the NCLAT extended JIL’s resolution process by 90 days, thereby allowing submission of fresh bids for the bankrupt realty company.
The tribunal said the process of bidding and approval of a resolution plan by the committee of creditors should conclude in 45 days. The 90-day extension came amid the lenders’ request to exclude around 250 days, from September 17, 2018 to June 4, 2019, from the stipulated period for the insolvency resolution process, as during this period no bid could be voted upon in view of the confusion regarding home buyers’ voting rights.
Under the IBC, the resolution process of a company is mandated to conclude within 270 days, failing which the company has to go for liquidation. The 270-day deadline for JIL ended on May 6. Home buyers had been seeking the Centre’s intervention in support of NBCC for taking over the company and its projects. The revised plan may revive the hopes of the distressed home buyers.
(Rituraj Baruah can be reached at firstname.lastname@example.org)