bidThe debt-ridden Jaypee Infratech went through another round of bidding as the National Company Law Appellate Tribunal (NCLAT) extended its resolution process by another 90 days. The National Building Construction Company [NBCC] and Adani Infrastructure are the frontrunners in the bid to acquire the company.

In its 30th July order, the appellate tribunal had said that the bidding process and approval by the committee of creditors (CoC) should be completed within 45 days from the receipt of the order and the remaining 45 days would be required for sanction by NCLAT.

The Adani group’s sister company Adani Infrastructure expressed its interest for bidding to acquire Jaypee as its counsel appealed for acceptance of its bid during the NCLAT hearing recently. However, the appellate tribunal didn’t consider their request and had said that the company can resubmit the bid as fresh bids would be invited.

In a recent order the two-judge Bench, headed by S.J. Mukhopadhaya, said that the court has given opportunity to all the eligible persons to file ‘expression of interest’/(improved) ‘resolution plan’, individually or jointly, or in concert with any person.

The Bench, however, barred Jaiprakash Associates, the parent company of JIL, from filing any resolution plan. Earlier to this, the Committee of Creditors [CoC] had rejected the bid of NBCC i.e. a state-run construction major firm in India is also likely to submit a fresh bid after the Bench said it could file a “fresh improved” resolution plan.

The sources informed that NBCC would like to continue with the bidding process as it is unlikely to relent on conditions over which the lenders voted against its plan.

In its earlier bid, NBCC had sought cancellation of approximately Rs. 33,000 crore income tax liability outstanding from more than 30 years under the concession agreement for the transfer of land from the Yamuna Expressway Industrial Development Authority (YEIDA) to JIL.

The state-owned firm also sought relief from taking consent of the YEIDA for any business transfer between JIL and Yamuna Expressway SPV for transfer of assets as well as land parcels from JIL.

The Committee of Creditors opposed these two conditions and voted against the NBCC bid. Now, it will be interesting to see how the Jaypee lenders will react to the fresh bid submitted by the National Building Construction Company.