Banking News

Real estate News: Real estate focussed fund Experion Developers set to acquire Dignity Buildcon

Singapore’s real estate focussed fund Experion Developers received the highest votes for Blackstone-backed besieged Dignity Buildcon in a deal that would imply a 50% recovery for lenders originally led by Stanchart Bank, according to an application filed by the resolution professional with the bankruptcy court.

Experion Developers offered Rs 450 crore for the real estate developer Dignity Buildcon – a company engaged in developing commercial towers on Golf Course Extension Road of Gurgaon.

The resolution of Dignity Developers, which was mired in a series of litigations, was eventually approved by 99.7% of lenders by value.

EY backed Shailendra Ajmera, who replaced the erstwhile RP in January 2022, received three plans from Experion, M3M India and Madhav Dhir and Alok Dhir, the promoters of Alchemist Asset Reconstruction Company. Sattva Developers, also in the fray, later withdrew its offer.

The RP admitted Rs 1065 crore claims from lenders, trade creditors and employees. Of this, admitted claims of lenders stood at Rs 1006.7 crore.
Experion offered Rs 450 crore to secured creditors, Rs 2.5 crore each to unsecured and trade creditors, and Rs 97 lakhs to employees.

Among major lenders, Standard Chartered Bank had the highest debt of 49.8%, three Blackstone (BREP Asia) real estate funds held 10.16% of debt, and Alchemist ARC had 35.36% of debt.

Interestingly, Standard Chartered Bank and Blackstone’s fund BREP sold their debt to Experion Capital in January and February 2023, respectively. Experion Capital, which acquired nearly 60% of debt, is also owned by the winning bidder.

The company was admitted for insolvency in April 2019. The erstwhile RP received 21 expressions of interest, but eventually, only about four applicants- Sattva, Safal Construction, M3M and Dhirs submitted resolution plans.

Between December 2020 and March 2021, the erstwhile RP had held voting on the plans by four bidders at least half a dozen times. In each of them, Sattva Construction received 64.64% voting, which is slightly below the 66% requisite vote needed to pass any resolution under the Insolvency and Bankruptcy Code.

All lenders, except Alchemist, voted in favour of the Sattva plan in each voting process. Since the CIRP period expired on March 9, 2021 and no resolution plan was approved, the erstwhile RP filed for liquidation. In December 2021, the appellate tribunal of bankruptcy court held that all four bidders should be given a chance to submit a revised bid, which was upheld by the Supreme Court.

Experion Developers is backed by Experion Holdings Pte, Singapore and is developing townships and hotels in several states in India.

Source link

Leave a Comment