Jaypee Infratech promoters to pay creditors entire outstanding amount; says will complete pending projects in 3 years

Promoters of debt-ridden Jaypee Infratech on Monday proposed before the NCLAT that they will pay creditors entire outstanding amount without any hair cut and complete pending projects within three years

Press Trust of India July 22, 2019 18:50:56 IST
Jaypee Infratech promoters to pay creditors entire outstanding amount; says will complete pending projects in 3 years
  • Jaypee Infratech went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium

  • During proceedings of the NCLAT, the promoters offered to pay the 100 percent outstanding amount to the creditors without any hair cut

  • It also offered to complete the construction of the remaining flats within three years and hand over to the original allottees

New Delhi: Promoters of debt-ridden Jaypee Infratech on Monday proposed before the NCLAT that they will pay creditors entire outstanding amount without any hair cut and complete pending projects within three years.

The National Company Law Appellate Tribunal (NCLAT) reserved its order over the exclusion of litigation period from the ongoing Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech.

A two-member bench headed by Chairman Justice S J Mukhopadhaya asked the Jaiprakash Associates Ltd (JAL), the promoter of Jaypee Infratech, to file written submissions over the exclusion of time frame.

Jaypee Infratech promoters to pay creditors entire outstanding amount says will complete pending projects in 3 years

Representational image. Reuters.

The appellate tribunal has directed to list the matter on 29 July, when it is likely to pass the order on this.

Lenders are requesting to exclude the 250 days from 17 September, 2018, to 4 June, 2019, from the stipulated period for Corporate Insolvency Resolution Process (CIRP), as this time was taken by the National Company Law Tribunal (NCLT) to decide on the voting rights of the homebuyers.

During proceedings of the NCLAT, the promoters offered to pay the 100 percent outstanding amount to the creditors without any hair cut.

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 the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.

It has Rs 9,800 crore outstanding to 13 banks. The firm also required to complete around 20,000 flats and handover them 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 IRP started the second round of the bidding process.

Jaiprakash Associates Ltd has submitted its bid to regain control over its subsidiary Jaypee Infratech. Business conglomerate Adani group too has submitted an unsolicited bid.

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