Debenture holders agree to drop bankruptcy claim against Peninsula Land

In a settlement deal consented to, all parties involved have agreed to withdraw a bankruptcy case filed against Peninsula Land. Although the settlement terms have not yet been made public, it is said that Peninsula Land must first reach a number of financial benchmarks for the insolvency petition to be fully withdrawn.

In September 2022, it was reported that debenture owners, represented by their trustee Vistra ITCL, had filed a plea with the National Company Law Tribunal (NCLT) against Peninsula Land to recall corporate guarantees amounting to over Rs 100 crore. The company had created over two dozen special purpose vehicles (SPV) to front its real estate projects but began defaulting on debenture payments for one of them in July 2021.

If reports are to be believed, the company has been able to escape insolvency proceedings by its debenture holders after a subsidiary Truewin Realty reached a settlement agreement with debenture holders earlier this month. The subsidiary had an exposure of around Rs 44 crore in outstanding non-convertible debentures.

Peninsula Land claims its has settled and repaid loans taken from RBL Bank. The company had been defaulting for several months on loans taken from RBL Bank as well as State Bank of India. In early January the total indebted amount was Rs 432 crore and the default amount, including interest and principal, was about Rs 88 crore.

Peninsula Land is jointly promoted by the Piramal Family and Jayadev Mody, husband of Zia Mody, an acclaimed lawyer and co-founder of law firm AZB and Partners. Peninsula Land has created several corporate parks across the city. It teamed by with Canadian real estate firm Brookfield to develop real estate in India.

Next (Madras High Court orders demolition of Olympia InfraTech compound wall)

Debenture holders agree to drop bankruptcy claim against Peninsula Land

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