The Allahabad bench of the National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Jaypee Infratech Ltd which is one of the 12 companies referred to the Tribunal.
The NCLT bench accepted the petition moved by IDBI Bank which is the leader of the consortium of lenders to the Jaypee Group company,and also approved the appointment of an interim resolution professional.
Ina BSE communication, JP Infra today said “consequent upon withdrawal of objections filed by the company, the NCLT bench of Allhabad has pronounced order admitting the petition of IDBI Bank filed under Section 7 of Insolvency and Bankruptcy Code, 2016, and appointing Interim Resolution Professional (IPR).
Including Jaypee Infratech, various benches of NCLTs have so far admitted insolvency proceedings against 10 of the 12 identified companies. The decision is only pending in case of Lanco Infratech Ltd and Era Infra Engineering Ltd.
As per the procedure, with the admission of Jaypee Infratech into insolvency proceedings, a 180-day moratorium— extendable by 90 days—has started, during which its board will be replaced by the resolution professional. The professional discharges the functions of the board until the resolution is completed.
Jaypee Infratech constructed the 165km Yamuna Expressway, connecting Noida and Agra.
As on 31 March, the consolidated debt of Jaypee Infratech was over Rs7,922 crore with a negative interest coverage ratio, which means the company is not earning enough to repay its debt.