Supreme Infrastructure India Ltd. has taken a significant step towards financial recovery by filing a petition with the National Company Law Tribunal (NCLT) to approve a new debt settlement plan. The "Composite Scheme of Compromise and Arrangement" received 92% support from creditors, signalling strong confidence in the restructuring. Initially facing a debt of INR 2,200.36 crore, the plan reduces this burden by INR 1,736.36 crore, leaving a manageable INR 464 crore. The company aims to achieve a debt-free status by September 2024 through asset monetization, equity raising, and promoter contributions, marking a fresh start for future projects.
Supreme Infrastructure India Ltd., a company specialising in infrastructure development across India, has taken a major step towards financial recovery. The company recently filed a petition with the National Company Law Tribunal (NCLT) seeking approval for a new debt settlement plan with its creditors.
This plan, known as the "Composite Scheme of Compromise and Arrangement," received overwhelming support from Supreme Infrastructure's financial creditors. In a recent board meeting, a massive 92% of creditor votes favoured the plan, which had already been approved by the company's board in 2022. This strong backing signifies confidence in the proposed restructuring.
Supreme Infrastructure's initial total outstanding debt to financial creditors stood at a staggering INR 2,200.36 crore. The new settlement plan represents a significant achievement, slashing this debt by INR 1,736.36 crore. The remaining amount of INR 464 crore is a much more manageable burden for the company. This substantial decrease paves the way for a debt-free future for Supreme Infrastructure. The company is confident of achieving this goal by September 2024, subject to NCLT approval.
Once the NCLT approves the plan, Supreme Infrastructure will implement a multifaceted approach to settle the remaining debt and achieve financial stability. This plan includes asset monetization, equity raising, and promoter contribution. The company will explore selling some of its assets, including both company-owned properties and those belonging to the promoters under a consortium charge, to generate funds. Supreme Infrastructure will also seek to raise additional capital from existing or new investors through an equity offering. The company's promoters will also contribute financially to ensure the settlement amount is fully covered.
Vikram Sharma, Managing Director of Supreme Infrastructure, expressed gratitude to the company's partners and creditors for their trust, highlighting the 92% vote in favour of the restructuring plan. With a clear path forward and strong backing, Supreme Infrastructure is well-positioned to emerge from this period with a solid financial footing. The company can then focus on future infrastructure development projects across India. Supreme Infrastructure's past accomplishments, including notable projects in Powai (Mumbai), Kolkata, Bhubaneswar, and Ahmednagar, demonstrate their capabilities in the infrastructure sector.
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