Lenders put NBCC bid back to voting

New Delhi: As the state-owned NBCC did not dilute certain conditions in its offer, including relief from future tax liabilities, creditors of Jaypee Infratech on Thursday has decided to put to vote NBCC's bid to acquire the debt-laden realty firm.

A source said, "Creditors had put certain conditions in their offer but NBCC did not dilute it. The prime condition was to exemption from future tax liabilities and seeking permission from Yamuna Expressway Industrial Development Authority (YEIDA)."

"So the voting under the insolvency process, run by Interim Resolution Professional Anuj Jain, will start from Friday and continue till June 10," the source added.

As many as 13 banks and over 23,000 home buyers have voting rights in the committee of creditors (CoC). Buyers have nearly 60 per cent votes. For the bid to be approved, 66 per cent voters should be in favour of the deal.

However, on the condition of tax exemption, the source said, "NBCC proposed that it would reduce the value of unsold inventories offered to lenders to Rs 1,300 crore from the earlier Rs 1,750 crore."

The banks had reservations to NBCC's bid, still the CoC has decided to put the offer to vote as per the direction of the National Company Law Appellate Tribunal (NCLAT). The tribunal had asked lenders to negotiate with NBCC by May 30 so that voting could start from May 31.

Earlier this week, lenders asked NBCC to sweeten its bid and demanded that the public sector firm should offer 1,426 acre land instead of 950 acre besides taking onus of getting approvals from income tax and development authorities.

The IDBI-led lenders' consortium had written to the NBCC that its bid would be considered favourably if the public sector firm meets its five conditions.

"The resolution plan should reinstate 1,426 acres of land that was earlier offered to the secured financial creditors under the debt asset swap," law firm Cyril Amarchand Mangaldas has written on behalf of the lenders consortium comprising 13 banks.