Jaypee Infra CoC seeks clarifications from NBCC over its bid

Last Updated: Fri, May 10, 2019 11:12 hrs
A man walks in front of a billboard of Jaypee Infratech in Mumbai

New Delhi: The Committee of Creditors (CoC) of insolvent Jaypee Infratech (JIL) has sought several clarifications from the NBCC regarding its revised bid to acquire the realty company, sources said.

The CoC wanted to know the source of funds of the state-run construction major for completing the projects and also sought clarification over its revenue model post the acquisition of the company and its projects.

The lenders met on Wednesday to discuss the NBCC's bid. They have sought the NBCC's reply by Monday (May 13) and would meet again to discuss over the bid and the clarifications on Tuesday, people in the know of things said.

Clarifications sought also pertained to legal aspects and wordings of the plan, they said.

On May 6, the Allahabad bench of the National Company Law Tribunal (NCLT) asked the CoC to consider the NBCC's revised bid. The bench would next hear the matter on May 21 and said that the corporate insolvency resolution process (CIRP) would continue.

It is the the only bid to be considered by the CoC now, after the lenders rejected Suraksha's bid in its latest e-voting procedure.

According to source, the bid of NBCC (India) Ltd -- formerly known as National Buildings Construction Corporation Ltd -- is worth around Rs 24,000 crore, compared to the liquidation value set by the Committee of Creditors (CoC) at Rs 17,000 crore.