Allahabad bench of the National Company Law Tribunal (NCLT) will pronounce an order in the insolvency petition against Jaypee Infratech on August 9. IDBI Bank had referred the company to the bankruptcy court in June following a nudge from the RBI.
The company said in a regulatory filing on Friday that it has withdrawn its reply to the petition. “In the larger interest of all stakeholders, including the home owners and depositors, the company has withdrawn its reply. After hearing both sides, NCLT has reserved its order to be pronounced on August 9, 2017,” Jaypee Infratech said.
The company reported a net loss of Rs 876 crore on Rs 962 crore in revenues in 2016-17 and its gross debt stood at Rs 7,922 crore. The company is part of the 12 large defaulters identified by the RBI based on a criterion of at least Rs 5,000 crore worth of debt exposure, 60 per cent of which being classified as non-performing. The RBI had on June 13 asked banks to refer a dozen troubled companies with a combined debt of close to Rs 2.4 lakh crore to the NCLT, following several failed attempts at loan recovery.
Once cases are with the NCLT, the lenders need to set up a committee of creditors that will come up with a plan on how the asset will be tackled. If the committee is unable to find a solution within 180 days — this can be extended to 270 days — the borrowing entity will go into liquidation.
(With FE inputs)