Promoters of Supreme Housing and Hospitality have deposited ₹200 crore toward a ₹518 crore settlement to clear ₹648 crore in total debt. This move aims to resolve insolvency proceedings initiated by lenders, primarily Canara Bank. The company now requires formal creditor approval by July 28 to finalize the deal and exit bankruptcy.
Supreme Housing and Hospitality is working to resolve its debt crisis as promoters have deposited ₹200 crore into a designated account. This payment is a crucial step in a one-time settlement plan valued at ₹518 crore, which seeks to satisfy a total debt of ₹648 crore owed to a consortium of lenders. The company is currently under insolvency proceedings, a legal process that happens when a business cannot pay its debts and is overseen by regulators.
Debt Settlement and Lender Recovery
Canara Bank, which is the lead lender in this case, holds a significant portion of the debt. The settlement plan estimates that Canara Bank will recover roughly ₹475 crore. Given that the bank's total fund-based exposure to the developer stood at ₹593 crore, this settlement represents a recovery of approximately 80% of its dues. The remaining amount from the ₹518 crore settlement package will be shared among four other participating lenders.
Insolvency Process and Next Steps
Insolvency proceedings against the developer were originally started by Canara Bank in May. These proceedings have been temporarily suspended to allow the settlement process to move forward. However, for this plan to become legally binding, it must secure approval from at least 90% of the lenders. The company has a deadline of July 28 to deposit the full settlement amount, and the next court hearing is set for August 7.
Potential Strategic Investment
Reports indicate that the Indore-based Kalyan Group may provide the capital needed to support this debt resolution plan. If this investment proceeds, it could provide the necessary liquidity for the company to settle its obligations with the banks. As the company moves toward the July 28 deadline, the primary monitorables for investors will be whether the required 90% lender approval is obtained and if the remaining balance of the settlement amount is deposited on time. These developments are critical to determining whether the company can successfully exit the insolvency process and resume normal operations.