A banking consortium led by Canara Bank has approved a Rs 522-crore one-time settlement from Supreme Housing and Hospitality, aiming to resolve nearly Rs 700 crore in total debt. While this offers a 75% recovery for lenders, the deal awaits final NCLT approval. Investors should note the company’s history of failed settlement attempts in previous years.
A consortium of lenders, spearheaded by Canara Bank, has reached a critical agreement to resolve the long-standing debt of Supreme Housing and Hospitality. With a 95% majority vote, the creditors have accepted a one-time settlement (OTS) offer of Rs 522 crore. This deal is designed to address nearly Rs 700 crore in total outstanding liabilities, providing the banks with a recovery rate of approximately 75%.
Breaking Down the Resolution
The settlement structure is intended to clear both fund-based claims and non-fund exposure, which includes corporate guarantees provided by the developer for its subsidiaries, such as Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways. The push for this resolution gained momentum earlier this year after the company deposited Rs 200 crore in July.
Canara Bank, which holds a significant position as the primary fund-based creditor with an exposure of Rs 593 crore, is expected to recover roughly Rs 475 crore under these terms, representing an 80% recovery for the lead lender. Other major financial institutions participating in this consortium include the State Bank of India, Punjab National Bank, Indian Bank, Union Bank of India, and the Bank of India. Reports indicate that the funds for this settlement are being arranged by the Indore-based Kalyan Group.
Historical Context and Risks
While the market may view this as a positive step toward balance sheet cleanup, investors and observers should weigh the company’s past record. Supreme Housing and Hospitality has a history of failed settlement commitments. Previous attempts to resolve debt in 2022 and 2025 did not reach a permanent conclusion, leading to repeated legal disputes and the revival of insolvency proceedings.
Furthermore, the company's business model has faced scrutiny due to its heavy reliance on a single core asset, the Supreme Business Park. This asset has been the subject of complex, long-running litigation and repeated debt restructuring efforts. Because the final resolution is not yet complete, any delay or failure in meeting the payout terms could potentially derail the current arrangement.
Next Steps for Investors
The entire agreement is now pending final authorization from the National Company Law Tribunal (NCLT). Until the tribunal gives its official nod, the settlement remains in a transition phase. Once the court provides the required approval, the company expects to receive formal no-dues certificates from the participating lenders, which would technically close the book on these legacy liabilities. For now, the most important update for stakeholders will be the formal NCLT order and confirmation that the payments are fully executed according to the agreed timeline.