NCLT approves Suraksha Realty’s bid for Jaypee Infratech
The long wait for 20,000 homebuyers of Jaypee Infratech Ltd may finally be over as the National Company Law Tribunal (NCLT) on 7 March 2023 has authorised Suraksha Realty to acquire the insolvent Jaypee Infratech Ltd and complete construction about 20,000 flats across various projects in the national capital region.
In an exchange filing, Jaypee Infratech has informed that the NCLT pronounced its order on 7th March 2023 (which was reserved on 22nd November, 2022) approving the resolution plan of Suraksha Reality Limited and Lakshdeep Investments and Finance Private Limited in respect of Jaypee Infratech Limited (JIL).
“The NCLT also passed order in respect of reconciliation of amount of Rs 750 crore deposited by Jaiprakash Associates Limited and interest thereon between JIL/its home buyers and JAL.
As per the resolution plan of Suraksha Realty, it will offer the bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. As per the plan, Suraksha will complete all pending flats (20,000) over the next four years.
Lenders of Jaypee Infratech had submitted claims of Rs 9,783 crore, while homebuyers had submitted over Rs 11,000 crore in claims.
Upon approval of the Resolution plan by NCLT, the issued, subscribed and paid up share capital of the Jaypee Infratech including preference shares if any, shall be cancelled and reduced in its entirety.
The entire share capital of the Corporate Debtor held by the shareholders of the Corporate Debtor shall be deemed to have been cancelled immediately on effectiveness of such cancellation and reduction as above, the issued, subscribed and paid-up share capital of the Corporate Debtor shall stand reduced to NIL.
Existing public shareholders will be given an aggregate exit at a price of Rs. 0.14 crore which is not less than the liquidation value
The Corporate Debtor will take the steps for delisting of its Equity Shares in accordance with the provisions of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009.
The cancellation of shares, capital reduction and delisting shall be applicable to erstwhile shareholders of Corporate Debtor.
Jaypee Infratech was one of the large 12 corporate default cases referred to NCLT for resolution by the Reserve Bank of India in July 2017. It has taken almost six years for the CIRP to see its final closure giving a sigh of relief to 20,000 home buyers.
Also Read: No end to Jaypee Infratech CIRP as NBCC submits revised bid
