Around 85% of lenders on Wednesday rejected Lakshadweep Pvt Ltd's Rs 7,350 crore resolution plan to buy Jaypee Infratech, a subsidiary of Jaypee groups flagship firm Jaiprakash Associates.

Lakshdeep Global Pvt Ltd, is a joint venture (JV) between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality.

Now, the Allahabad bench of National Company Law Tribunal (NCLT) will refer the case to Supreme Court or will go for the company's liquidation. The liquidation value of the company is between Rs 12,000-14,000 crore.

Read also: Voting on Lakshdweep's resolution plan for JP Infratech to conclude today

Lakshadweep Pvt Ltd was identified as H1 by Committee of Creditors (CoC) over other bidders like Kotak-Cube JV, Adani Group and JSW Group.

Jaypee Infratech is facing insolvency proceedings after it defaulted on loan repayments.

The NCLT had last year admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The JV has offered Rs 1,200 crore in cash to the banks, Rs 4,000 crore worth land parcel and the rest in form of long-term non-convertible debentures in the insolvency auction. A small equity stake to lenders is also part of the offer.

Jaypee Infratech currently has about Rs 24,000 crore worth assets while its debt is nearly Rs 10,000 crore.

First Published:May 9, 2018 5:46 PM IST