More Stories

Informist, Friday, Sep 6, 2024

 

NEW DELHI – The Supreme Court today refused to stay the implementation of Adani Goodhomes Pvt Ltd's resolution plan for debt-ridden Radius Estates & Developers Pvt Ltd. The apex court issued a notice to the resolution professional of Radius Estates and other parties related to the case on a challenge by its dissenting creditor Beacon Trusteeship Ltd, which said the plan gave a 93% haircut to its claim.

 

The Bench, led by Justice Sanjiv Khanna, said the top court was inclined to examine the question of dues payable to Beacon Trusteeship. The apex court will hear the case next in the third week of January. 

 

In April 2021, the Mumbai bench of the National Company Law Tribunal admitted Beacon Trusteeship's petition to start insolvency proceedings against Radius Estates. The committee of creditors of the debt-ridden company included homebuyers, HDFC Bank Ltd, Piramal Capital and Housing Finance Ltd, Beacon Trusteeship, and ICICI Prudential. In January 2023, the tribunal approved Adani Goodhomes' resolution plan for the debt-ridden company. According to media reports, Adani Goodhomes proposed to pay 760 mln rupees against a total claim of 17 bln rupees. 

 

ICICI Prudential and Beacon Trusteeship, which were creditors of Radius Estates, held debentures on behalf of investors. They opposed Adani Goodhomes' bid for the debt-ridden company alleging foul play. The two creditors demanded the insolvency resolution process be scrapped and started afresh.

 

ICICI Prudential and Beacon Trusteeship alleged that Jayesh Sanghrajka, the resolution professional of Radius Estates, had colluded with the largest creditor HDFC Bank to influence the bankruptcy process in favour of Adani Goodhomes, which resulted in the debt-ridden company receiving a single bid.

 

The tribunal failed to consider that the resolution plan by Adani Goodhomes was in contravention of the Insolvency and Bankruptcy Code, 2016, and it was unfair and inequitable as it provided a 93% haircut to the claims for secured financial creditor, while on the other hand, it provided 100% recovery to homebuyers by way of allotted units in the project without them having to bear any haircut or price escalation, ICICI Prudential and Beacon Trusteeship said.  End

 

Reported by Surya Tripathi

Edited by Vidhi Verma

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.