Jaypee Associates (JAL), a company facing insolvency proceedings, made another attempt to settle its dues with the bankers by proposing a one-time settlement of ₹16,200 crore. However, the bankers expressed their doubts about the proposal during the hearing at the National Company Law Appellate Tribunal (NCLAT) today.
Sunil Kukar Sharma, a member of the suspended board of Jaypee Associates, appealed against the NCLT’s order on June 3, which initiated insolvency proceedings against the company. The NCLAT is currently reviewing his appeal.
The bankers informed the NCLAT that they had filed the insolvency plea against JAL back in 2017 and that the company has been reluctant to settle the dues for the past seven years. They were responding to the one-time settlement (OTS) proposal put forth by JAL in the previous hearing.
According to the OTS proposal, JAL is offering to pay ₹200 crore upfront and guaranteeing the payment of ₹16,000 crore over a period of 18 months. The lenders have claimed a total of ₹26,000 crore in dues.
After a brief hearing, the NCLAT acknowledged that the lenders had not formally responded to the OTS proposal. The lenders explained that JAL had issued a clarification the night before the hearing, leaving them with insufficient time to consider it.
The NCLAT has now instructed the lenders to carefully review the OTS proposal and submit a formal response before the next hearing, scheduled for July 3. In the meantime, the NCLAT will continue to hear the case and assess the situation.