1 August 2019: The committee of creditors (CoC) of Jaypee Infratech will meet on August 5 to discuss the future course of action following the NCLAT’s Tuesday order of extending the resolution period by 90 days. The panel will deliberate on the process for inviting fresh bids for the debt-laden real estate developer.
Sources said the CoC’s agenda includes inviting fresh resolution plans, preparation of the process note for request for resolution plan (RFRP) as well as reducing the notice period for calling a meeting of the panel. This will be the third time that bids are being invited for JIL.
“Although, the NCLAT denied Manoj Gaur any chance of participating, the window is open for NBCC, which is likely to come up with a revised plan. In the last CoC, lenders were not in favour of NBCC’s condition that unsold housing units should be taken over by the bankers. Hence its bid was rejected. Adani Group will also be asked to place its resolution plan,” one of the sources said.
JIL’s corporate insolvency resolution process (CIRP) period of 270 days expired on May 6 this year and the NCLAT in its July 30 order excluded the 90 days for counting the 270 days, which will now be counted from the date of the NCLAT order, that is July 30. This has been done by the appellate tribunal to enable the resolution professional (RP), Anuj Jain and the CoC to call for fresh bids.
“CoC will vote on bringing down notice period for calling a meeting of the panel from five days to two. This means that after it is passed, CoC meetings can be called by giving its members a notice of 48 hours,” sources said.
According to the Insolvency and Bankruptcy Board of India (IBBI) regulations, CoC meetings can be called by giving a five day notice to members, but the panel can reduce this period to not less than two days in case the notice is being sent to an authorised representative and one day in other cases, the source explained.
On Tuesday, a two-member bench headed by NCLAT chairman Justice S J Mukhopadhaya, extended JIL’s CIRP period by 90 days, which includes a 45-day window for inviting fresh bids. Besides rejecting plea of JIL promoter, Jaiprakash Associates to be eligible to submit bid, it has asked the state-owned NBCC to submit a fresh resolution plan.
The NCLAT did not express any opinion over the bid to be filed by Adani. “It is informed that Adani Infra also proposed to file resolution plan, but we are not expressing any opinion with regard to the same,” it said.