The Insolvency Appellate Tribunal (NCLAT) announced it will await the lenders' decision on a revised settlement offer from Supertech Realtors, developers of the INR 2,326.14 crore Supernova project. The NCLAT directed the Interim Resolution Professional (IRP) not to form a Committee of Creditors yet but allowed construction to continue under IRP supervision. Supertech Realtors submitted a one-time settlement (OTS) offer, initially agreed upon by the lead bank and now under consideration by other banks. The NCLAT emphasized the project's progress and an investor's readiness to fund completion. The next hearing is scheduled for August 8, 2024, to review the lenders' decision.
Earlier this month, the Insolvency Appellate Tribunal (NCLAT) announced it will wait for the lenders' decision on a revised settlement offer from Supertech Realtors. This company is developing the Supernova project, which includes residential apartments, offices, retail spaces, and luxury hotels at a cost of INR 2,326.14 crore
The NCLAT directed the Interim Resolution Professional (IRP) not to form a Committee of Creditors yet. However, construction on the Supernova project can continue under the IRP's supervision. A three-member NCLAT bench noted that Supertech Realtors has submitted a one-time settlement (OTS) offer. The lead bank has initially agreed to this proposal, which is now being considered by a group of banks.
The tribunal's order stated that while the Committee of Creditors should not be formed for now, the ongoing construction must proceed under the IRP's supervision. Furthermore, Supertech Realtors' bank accounts will be operated only with the joint signature of the IRP to fund the construction. This interim order came during the hearing of an appeal by Ram Kishore Arora, a director of the suspended board of Supertech Realtors. He challenged a previous order from the National Company Law Tribunal (NCLT), which admitted an insolvency plea by the Bank of Maharashtra due to a INR 168.04 crore default and appointed Anju Agarwal as the IRP.
The NCLAT has requested responses from lenders within three weeks and scheduled the next hearing for August 8, 2024. Supertech Realtors is developing the Supernova project, which is set to be the tallest building in Delhi-NCR, with a projected height of 300 meters and 80 floors. During the NCLAT proceedings, Supertech Realtors acknowledged their debt to the Bank of Maharashtra and mentioned they have proposed a settlement via Kotak Advisors Ltd. This proposal is 75% of the running ledger book balance of the consortium lenders. The lead bank has acknowledged receiving this revised proposal.
A lenders' meeting on March 18, 2024, included participation from the Bank of Maharashtra and the Union Bank of India. The lead bank has principally agreed to the proposal, while the Bank of Maharashtra is still in consultation. Supertech Realtors argued that with the proposal under consideration and the lead bank's acceptance, initiating a Corporate Insolvency Resolution Process is unnecessary. They also mentioned that the Supernova Project is 80% complete, and an investor is ready to fund the remaining construction.
The Bank of Maharashtra expressed concerns about previous unfulfilled OTS proposals by Supertech Realtors. Despite this, the NCLAT believes it is appropriate to wait for the consortium's decision on the revised offer before proceeding further. The Supernova project has allocated more than 600 units to buyers, and the rest of the project will be completed with the new investment from Kotak Advisors Ltd. The NCLAT will reconvene after four weeks to review the lenders' decision on the revised offer. Supertech Realtors received a INR 150 crore term loan in December 2012, repayable by March 2023. However, the company defaulted on payments and breached credit limits, resulting in significant outstanding debt.
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