Bank of Baroda, one of the lender in Supertech Group has approved and sanctioned the resolution plan for company’s Dehradun project paving way for delivery of over 600 homebuyers.
The company had submitted a project-wise resolution plan in National Company Law Appellate Tribunal (NCLAT) and this is the first project which has got approval from the lender.
Bank of Baroda has also given its consent for the inclusion of co-developer in the project.
“We have tied up with a local developer to resume the stalled project. We will now seek further approvals from other lenders for other projects. Our aim is to secure approval for each project one by one. The bank has not shown interest in NBCC’s proposal of taking over the project and instead allowed us to resolve it,” said RK Arora, chairman of Supertech group.
Recently, Kotak Investment Advisors Ltd (KIAL) has agreed to invest Rs 450 crore in Supertech’s stalled mixed-use project in Noida, offering a major financial lifeline to the cash-strapped realty developer.
The 5 million sq ft ‘Supernova’ project in Sector 94 is currently 50% completed and it includes the tallest residential tower in the NCR region. On completion, the project has a revenue potential of more than Rs 7,000 crore, according to the proposal of Supertech to the Noida authority.
The revival of Supernova is expected to help Supertech resume its other projects which have been delayed for several years.
The Noida-headquartered property developer has to deliver over 15,000 homes. Supertech’s total liabilities including dues to banks and development authority total about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects’ net worth positive.
The company has already submitted a proposal to the Uttar Pradesh government for its revival. It is in the process of selling some land parcels to give exits to lenders and use the remaining funds to expedite construction on stalled projects.
Source: Economic Times