Jaypee resolution plan failed, liquidation only solution: IRP to SC
Counsel for Anuj Jain, the insolvency resolution professional (IRP) for Jaypee Infratech submitted before the Supreme Court on Friday that the process under insolvency and bankruptcy code (IBC) has failed, as no plan proposed till date has succeeded.
“..Now liquidation was the only alternative available under the IBC..,” the counsel for IRP said.
Liquidation will mean the company’s assets will be sold and lenders will have the first right over the sale proceedings. However, the bench comprising of Chief Justice of India, Dipak Misra, judge AM Khanwilkar and judge DY Chandhrachud reiterated that the primary aim is to ensure that flat buyers get relief.
After IRP invited bids for Jaypee, Lakshadweep -a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company, Mumbai-based Dosti Realty, Adani Group and Valia Group showed interest and submitted the resolution plan.
Jaypee Group’s promoter Manoj Gaur also made an offer of over Rs 10,000 crore.
However on May 10, committee of creditors (CoC) of Jaypee Infratech rejected the offer of Valia Group and didn’t consider the one submitted by Gaur. All other offers were previously rejected.
The company has an outstanding debt of nearly Rs 9,800 crore from Axis Bank, Bank Of Maharashtra, Corporation Bank, ICICI Bank, IDBI, IIFCL, IFCI, J&K Bank, LIC, SBI, Syndicate Bank, Srei Equipment Finance and Union Bank.
Meanwhile, Jaiprakash Associates (JAL) through its counsel Anupam Lal Das pleaded that they had a plan for Jaypee Infratech outside the IBC which could be successful.