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According to an application submitted with the bankruptcy court by the resolution professional, Singapore based real estate fund Experion Developers has offered a deal to take over the Blackstone-backed Dignity Builcon in a deal that would entail a fifty percent recovery for lenders initially led by Standard Chartered Bank. Experion Developers made an offer of Rs. 450 crores for the Gurgaon-based Dignity Buildcon, which specializes in real estate development.
According to reports, almost all lenders supported the latest resolution plan. Three plans were submitted by Experion, M3M India, Madhav and Alok Dhir, the owners of Alchemist Asset Reconstruction Company. The resolution professional appointed acknowledged claims of Rs 1065crores made by lenders, business creditors and employees.
Experion presented secured creditors with an offer of Rs. 450 crore, trade creditors with a proposal of Rs. 2.5 crore, and employees with an offer of Rs. 97 lakhs. Standard Chartered Bank owned the most debt among major lenders at 49.8%, followed by three Blackstone (BREP Asia) real estate funds with 10.16% and Alchemist ARC with 35.36%. It's interesting to note that in January and February of 2023, Standard Chartered Bank and Blackstone's fund BREP respectively sold their debt to Experion Capital. The successful bidder also owns Experion Capital, which bought approximately 60% of the debt.
In April 2019, the company's insolvency was acknowledged. 21 expressions of interest were received for the former RP, but only roughly four applicants—Sattva, Safal Construction, M3M and Dhirs—finally submitted resolution plans. The former RP held voting on the designs submitted by the four bidders at least half a dozen times between December 2020 and March 2021. Sattva Construction received 64.64% of the vote in each of them, just shy of the 66% necessary to adopt a resolution in accordance with the Insolvency and Bankruptcy Code.
In each voting session, every lender supported the Sattva plan except for Alchemist. The former RP filed for liquidation on March 9, 2021, when the CIRP time expired and no resolution plan had been authorized. The Supreme Court confirmed the decision made by the bankruptcy court's appellate tribunal in December 2021 that each of the four bidders should be given the opportunity to submit a fresh offer. Experion Developers, which has the support of Experion Holdings Pte, Singapore, is building hotels and townships in numerous Indian states.
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