National Company Law Tribunal: NCLT approves Rs. 990 crore debt resolution offer for Sare Homes unit

National company law tribunal (NCLT) has approved a Rs. 990 crore debt resolution plan for a unit of Sare Homes. The plan was submitted by a consortium of KGK Realty and Dhoot Infrastructure.

KGK Realty has a 74% share in the consortium and Dhoot Realty has a 24% share, according to an order uploaded on NCLT’s website on 24 April.

The two-player consortium had submitted a debt resolution plan for Sare Gurugram Private Limited, the unit of Sare Homes that defaulted on dues to creditors and was unable to complete construction of a promised township located on the outskirts of Delhi.

The consortium outbid five others bidders, including realty companies Alpha Corp and Signature Global and high net worth individual investors Nikhil Jain, Sunil Kumar Jain and Sumeet Nanda.

Home owners and financiers had filed claims worth around Rs. 2100 crore when the company was admitted for bankruptcy. Financiers claims were around Rs. 1000 crore. The home owners had filed claims of Rs. 1100 crore.

The original funding for the company, which is developing a 47-acre township, came from KKR, Altico Capital and Edelweiss. They subsequently sold their loans. Assets Care and Reconstruction Enterprise (ACRE), Alchemist Asset Reconstruction Company and Bank of India are the existing financial creditors.

As per the present plan, the home buyers will get possession of their apartments within 36 months.NCLT had admitted Sare’s Gurugram unit for bankruptcy on 9 March 2021. Ajit Gyanchand Jain was appointed as resolution professional. Khaitan and Co.’s partner Siddharth Srivastava acted as legal advisor to Jain. PWC acted as his financial adviser.