MUMBAI: The National Company Law Tribunal ( NCLT) has approved Adani Properties' acquisition of two assets of defunct real estate developer Housing Development and Infrastructure (HDIL) through the corporate insolvency resolution process ( CIRP).
The assets include a commercial property known as 'Inspire BKC' in Mumbai's business district Bandra-Kurla Complex and a land parcel in Kalyan Shahad on the outskirts of Mumbai.
Adani Properties was found to be the only bidder to make Insolvency and Bankruptcy Code ( IBC)-compliant proposal for both the properties.
For the Inspire BKC commercial project, its resolution plan is valued at Rs 3 crore. This includes Rs 2.85 crore allocated to creditors and Rs 15 lakh for CIRP costs. In the case of Shahad land parcel, the fair value and liquidation value were estimated at Rs 89.66 crore and Rs 62.76 crore, respectively.
According to industry experts, both these assets in central Mumbai and Kalyan together are estimated to be valued at over Rs 2,000 crore.
The Mumbai bench of the NCLT approved the resolution plans for both projects under Section 31 of the IBC, 2016. The committee of creditors (CoC) had cleared both the plans with 66.08% voting share in 2022. The voting concluded in November 2022.
The Rakesh Wadhawan-promoted HDIL has been undergoing insolvency since 2019 with admitted liabilities of over Rs 7,789 crore.
While its resolution professional had initially issued an expression of interest for a resolution of the entire company in February 2020, it did not receive any proposal.
As the company had several unfinished residential properties, the National Company Law Appellate Tribunal (NCLAT) allowed a project-wise resolution plan.
The CoC had initially rejected this proposal. However, following objections from homebuyers, the committee reversed its stance in September 2021 and authorised the RP to explore project-wise resolution.
HDIL was then divided into 10 verticals for streamlining the resolution process.
The current approvals to Adani Properties include verticals V and IX.
For Vertical V, the Inspire BKC commercial project, the plan proposes that Adani will not acquire HDIL as a going concern but will demerge the BKC project into itself or a subsidiary.
Adani has also agreed to continue the existing Slum Rehabilitation Authority (SRA) development agreement with Budhpur Buildcon.
Budhpur Buildcon, representing Adani's interest, now holds the Letter of Intent for the slum rehabilitation project that HDIL originally began in BKC, and is tasked with completing the rehabilitation under SRA oversight.
In the case of Vertical IX, the Shahad land parcel, Punjab and Maharashtra Cooperative Bank - now Unity Small Finance Bank - is the sole secured creditor holding mortgage rights.
The bank's objections to the valuation were dismissed by the tribunal in July 2024.
Both plans include performance guarantees of Rs 5 crore each, as required under the CIRP regulations.
ET's query to Adani Group remained unanswered until press time Tuesday.
The assets include a commercial property known as 'Inspire BKC' in Mumbai's business district Bandra-Kurla Complex and a land parcel in Kalyan Shahad on the outskirts of Mumbai.
Adani Properties was found to be the only bidder to make Insolvency and Bankruptcy Code ( IBC)-compliant proposal for both the properties.
For the Inspire BKC commercial project, its resolution plan is valued at Rs 3 crore. This includes Rs 2.85 crore allocated to creditors and Rs 15 lakh for CIRP costs. In the case of Shahad land parcel, the fair value and liquidation value were estimated at Rs 89.66 crore and Rs 62.76 crore, respectively.
According to industry experts, both these assets in central Mumbai and Kalyan together are estimated to be valued at over Rs 2,000 crore.
The Mumbai bench of the NCLT approved the resolution plans for both projects under Section 31 of the IBC, 2016. The committee of creditors (CoC) had cleared both the plans with 66.08% voting share in 2022. The voting concluded in November 2022.
The Rakesh Wadhawan-promoted HDIL has been undergoing insolvency since 2019 with admitted liabilities of over Rs 7,789 crore.
While its resolution professional had initially issued an expression of interest for a resolution of the entire company in February 2020, it did not receive any proposal.
As the company had several unfinished residential properties, the National Company Law Appellate Tribunal (NCLAT) allowed a project-wise resolution plan.
The CoC had initially rejected this proposal. However, following objections from homebuyers, the committee reversed its stance in September 2021 and authorised the RP to explore project-wise resolution.
HDIL was then divided into 10 verticals for streamlining the resolution process.
The current approvals to Adani Properties include verticals V and IX.
For Vertical V, the Inspire BKC commercial project, the plan proposes that Adani will not acquire HDIL as a going concern but will demerge the BKC project into itself or a subsidiary.
Adani has also agreed to continue the existing Slum Rehabilitation Authority (SRA) development agreement with Budhpur Buildcon.
Budhpur Buildcon, representing Adani's interest, now holds the Letter of Intent for the slum rehabilitation project that HDIL originally began in BKC, and is tasked with completing the rehabilitation under SRA oversight.
In the case of Vertical IX, the Shahad land parcel, Punjab and Maharashtra Cooperative Bank - now Unity Small Finance Bank - is the sole secured creditor holding mortgage rights.
The bank's objections to the valuation were dismissed by the tribunal in July 2024.
Both plans include performance guarantees of Rs 5 crore each, as required under the CIRP regulations.
ET's query to Adani Group remained unanswered until press time Tuesday.
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