Shree Naman Receives NCLT Approval for Radius Infra Acquisition

    Date:

    Share post:

    Shree Naman Receives NCLT Approval for Radius Infra Acquisition: Resolving Financial Distress through Resolution Plan

    Shree Naman Developers has received approval from the National Company Law Tribunal (NCLT) to take over Radius Infra Holdings, a real estate developer. This move comes as part of a resolution plan aimed at settling 81% of the company’s secured financial debt.

    Radius Infra Holdings, facing financial difficulties, entered the corporate insolvency resolution process (CIRP) in May 2022. With liabilities totaling around ₹1,050 crore, the successful resolution plan involves Shree Naman Developers paying ₹180 crore to acquire the company, resolving 17% of the debt.

    The acquired company holds a valuable land parcel of almost half an acre in Mumbai’s Andheri area, with plans for development within 36 months under the NCLT-approved resolution.

    Before receiving approval, the resolution professional, backed by BDO Restructuring Advisory LLP, informed the tribunal that Shree Naman Developers’ revival plan had secured unanimous approval from secured lenders. The Committee of Creditors (CoC), comprising financial lenders, supported the resolution plan, with JC Flowers ARC holding 81.12% voting power and Suraksha ARC holding 18.88%.

    Additionally, Naman Group plans to inject ₹50 crore in working capital to facilitate project completion, in addition to the ₹180 crore under the resolution plan.

    Radius Infra Holdings, as a corporate guarantor for loans taken by its group companies, owed nearly ₹700 crore to Yes Bank. It guaranteed loan repayments for E-Commerce Magnum Solution and Raghuleela Builders, with Yes Bank sanctioning a term loan of ₹500 crore to E-Commerce Magnum Solution, disbursing ₹283 crore of it.

    Also read: The Golden Era of Luxury Real Estate: Thriving Investments in the National Capital Region (NCR)

    Related Posts

    Latest posts

    Maharashtra to Publish Draft RR Rates Online for Public Feedback

    PUNE — In a first, the Maharashtra government has directed the registration department to publish proposed Ready Reckoner...

    India ranks third in global LEED green building certification for 2024

    India has retained its third-place ranking in the U.S. Green Building Council’s (USGBC) annual list of the top...

    Prestige Group Expanding Mall Portfolio with New Projects in Mumbai & Delhi-NCR

    Real estate developer Prestige Group is expanding its retail footprint with new mall projects in Mumbai and Delhi-NCR,...

    RBI Offers Nariman Point Plot to Expand Headquarters

    Mumbai – The Reserve Bank of India (RBI) has offered ₹2,650 crore to Mumbai Metro Rail Corporation Limited...