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Banks vote against NBCC bid

Banks vote against NBCC bid
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A majority of Jaypee Infratech's lenders have voted against NBCC's bid but most home buyers wanted the state-owned company to take over the debt-laden realty firm, sources said.

New Delhi: A majority of Jaypee Infratech's lenders have voted against NBCC's bid but most home buyers wanted the state-owned company to take over the debt-laden realty firm, sources said.

The development comes hours after the National Company Law Appellate Tribunal (NCLAT) clarified that it has not barred lenders from voting against NBCC's resolution plan.

While the exact percentage of votes in favour and against the NBCC's takeover plan was not disclosed due to an insolvency court order, sources said the bid possibly has not mustered the requisite nod of two-third of lenders and buyers. The voting result is to be placed before the NCLAT.

In most bankruptcy proceedings, lenders have the right to vote for or against a resolution plan for a debt-laden firm. In the case of realty firms, home buyers also have voting rights at par with lenders.

As many as 13 banks and over 23,000 homebuyers have voting rights in the Committee of Creditors (CoC) of Jaypee Infratech.

Homebuyers represent nearly 60 per cent of voting rights, while banks have the rest. For approval of any resolution plan, at least 66 per cent votes should be in favour.

Earlier on Monday, the NCLAT clarified that it has not barred lenders from voting against NBCC's resolution plan.

Bankers had reservation with the NBCC's bid because of certain concession sought by the state-owned firm related to future tax liabilities.

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