The National Company Law Tribunal (NCLT) has approved the recommendation of state-owned NBCC to take debt-ridden Jaypee Infratech through a bankruptcy process. The Supreme bench of NCLT directed by Acting President B S V Prakash Kumar gave a green flag to the plan of NBCC, which was approved by the lenders of Jaypee Infratech in December 2019.

The authority also altered the resolution plan and stated the amount of Rs 750 crore invested by Jaiprakash Associates would be part of the plan. The thriving resolution aims in providing great relief to more than 20,000 homebuyers across several housing projects initiated by Jaypee Infratech in Noida and Greater Noida of Uttar Pradesh. NBCC has offered to complete pending flats that are over 20,000 in the coming next three-and-a-half years. Client’s interest amounting to Rs 13,364 crore and lenders’ interest value Rs 9,783 crore have been confirmed.

In its newest bid, NBCC granted 1,526 acres of land to lenders who were under a land-debt swap deal. NBCC has proposed to transfer the road asset to lenders but ere that, it would get a loan of approximately Rs 2,500 crore against customs revenue to finance construction spend on Yamuna Expressway.Jaypee Infratech that is a subsidiary of Jaiprakash Associates went into bankruptcy in August of 2017 after the NCLT received an application by an IDBI Bank-led consortium.

 

Source: https://realty.economictimes.indiatimes.com/news/regulatory/nclt-approves-nbccs-bid-for-jaypeeinfratech/

 

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