The National Company Law Tribunal has approved Shree Naman Developers' resolution plan to acquire the financially distressed real estate developer Radius Infra Holdings undergoing corporate insolvency. Radius had total liabilities of INR 1,050 crore. Under the plan, Naman Developers will acquire Radius by paying INR 180 crore, settling 17% of total debt. As part of the plan, Naman will develop Radius' prime half acre land parcel in Mumbai's Andheri within 36 months. Naman Group will also infuse INR 50 crore in working capital for the project over and above the INR 180 crore acquisition amount.
The National Company Law Tribunal (NCLT) approved Shree Naman Developers' acquisition of the distressed real estate developer Radius Infra Holdings. Naman Developers' resolution plan will help settle 81% of Radius Infra's secured financial debt.
Radius Infra Holdings has been undergoing the corporate insolvency resolution process (CIRP) since May 2022, due to financial distress. It had total liabilities of around INR 1,050 crore. Under the approved plan, Naman Developers will acquire Radius Infra Holdings by paying INR 180 crore. This settlement will cover 17% of the total debt.
Radius Infra Holdings owns a nearly half-acre prime land parcel in Mumbai's Andheri area with development potential. As per the NCLT-approved plan, Naman Developers will develop this land parcel within the next 36 months.
Prior to the approvals, the resolution professional Bhrugesh Amin, backed by insolvency professional entity BDO Restructuring Advisory LLP, informed the tribunal that Shree Naman Developers' revival plan had received 100% approval from secured lenders. JC Flowers ARC holds 81.12% voting rights in the committee of creditors, while Suraksha ARC holds the remaining 18.88%. The committee of creditors comprising financial lenders had endorsed the resolution plan.
Naman Group will also infuse INR 50 crore in working capital for the project over and above the INR 180 crore acquisition amount, as required. Radius Infra Holdings owed nearly INR 700 crore to Yes Bank as the corporate guarantor for loans of its group companies.
The lender had sanctioned a term loan of INR 500 crore in favour of E-Commerce Magnum Solution and, of this, had disbursed INR 283 crore.
The acquisition is expected to help complete Radius Infra Holdings' stalled projects and provide some debt relief to lenders like Yes Bank, to whom Radius owed INR 700 crore as corporate guarantor for loans to group companies. The NCLT approval brings much needed resolution to the distressed real estate company.
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