NBCC, Suraksha submit fresh resolution plans for Jaypee Infra

Industry Outlook Team | Thursday, 08 April 2021

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State-run construction major NBCC Ltd, and Suraksha Realty have submitted fresh resolution plans for Jaypee Infratech.

The Committee of Creditors (CoC) are scheduled to meet on April 12 to discuss both the resolution plans. This is the fourth time that both the companies have submitted their bids for the bankrupt company.

The development comes after the Supreme Court on March 24 extended the timeline for the resolution of Jaypee Infratech Ltd (JIL) by another 45 days and directed the interim resolution professional to invite fresh bids from NBCC and Suraksha Realty.

Directing the IRP to complete the corporate insolvency resolution process (CIRP) within the extended time, the three-judge bench

had said that it will be open to the IRP to invite modified or fresh resolution plans only from Suraksha Realty and NBCC, giving them time to submit the same within the next 2 weeks.

NBCC, in a regulatory filing, informed the exchanges that it has submitted its fresh resolution plan, while sources have confirmed that Suraksha too has submitted its fresh proposal.

After a long-drawn resolution process, the National Company Law Tribunal's (NCLT) principal bench in March last year okayed public sector major NBCC's resolution plan to acquire JIL.

The tribunal modified the resolution plan and said that the Rs 750 crore deposited by Jaiprakash Associates at the Supreme Court would be part of the resolution plan. Now, the Supreme Court has nullified that ruling.

Jaypee Associates, the promoter group of JIL, sought back the Rs 750 crore it submitted in the Supreme Court. NBCC had opposed it, saying the amount is an integral part of its resolution plan for acquisition and completion of the projects of JIL. Both the bidders, NBCC and Mumbai-based Suraksha Realty, had included the Rs 750 crore in their resolution plans.

In December 2019, NBCC's resolution plan received 97.36 per cent votes of the Committee of Creditors (CoC), with majority of the home buyers and the major banks voting in favour of the bid. NBCC's plan received overwhelming support against the required 66 per cent votes for approval. The other bidder in the fray, Suraksha Realty, received 2.12 per cent votes.