Ultra Homes -an Amrapali Group company -has gone in for insolvency resolution.Bank of Baroda, one of the lenders to the commercial project in Greater Noida, had moved the National Company Law Tribunal to recover its dues.
The principal bench of NCLT, Delhi, issued the order on the lender’s plea.
The tribunal appointed Sanjay Gupta as the insolvency resolution professional (IRP), who will act on behalf of the lenders, and suggest the best possible way to recover the debt, keeping the value of the property intact.
The existing board of the company will remain suspended.
IRP will have to find a solution in 180 days, which is extendable to another 90 days. If it fails to find a solution, the company will go in for bankruptcy proceedings. IRP can suggest a solution by finding a new investor who is ready to infuse capital to service the bank debt and other liabilities.
A banking source said IRP could also ask lending banks to reschedule the debt repayment, or take a hit on the principal amount. However, it is believed that the company has enough assets in form of unsold space and unutilised land to emerge from the current mess, provided the banks reschedule the debt repayment and the real estate market recovers.
Amrapali’s Silicon City in Noida is already under the insolvency resolution process on the order of the same tribunal.
Under the Ultra Homes project, BOB has outstanding dues of Rs 36.88 crore. The company is constructing a hotel, a mall and a commercial IT space. It had borrowed Rs 288 crore from banks. A company source said that they had so far returned Rs 400 crore with interest to banks.However, the firm still owes Rs 117 crore.
The company also has to pay around Rs 20 crore to the Greater Noida authority, which would also be treated as a secured lender.
(This article was originally published in The Times of India)
Source: Economic Times