• Industry
• 2 min read

Lenders accept Supreme Housing's ₹522-crore settlement offer

Canara Bank along with other lenders accepted a ₹522-crore one time settlement offer from Supreme Housing and Hospitality. This settlement will help the company resolve debts close to ₹700 crore, representing a 75% recovery for involved banks. The one-time settlement includes both fund and non-fund exposure from corporate guarantees given to subsidiary entities.

To be sure, this one-time plan includes non-fund exposure to the company through corporate guarantees given to subsidiary entities-Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways. The OTS was initiated after the company had deposited ₹200 crore in July this year.

"Lenders have voted for this offer from the corporate debtor and the same will now be put before the NCLT for approval. Besides Canara, the other banks gaining from this settlement include State Bank of India, Punjab National Bank, Indian Bank, Union Bank of India and Bank of India. This offer settles fund and non fund based claims from lenders," said a person aware of the details.

Of the total value of the one-time settlement is ₹522 crore about ₹475 crore will come to Canara Bank, which has the only fund-based exposure to the company, SHH owes Canara ₹593 crore, making the settlement around an 80% recovery for the Bangalore-based lender.

The company confirmed the settlement in a statement. "The resolution addresses entire legacy debt, marking a major milestone in the company's financial restructuring...following implementation, the company received full and final no dues certificates from the respective creditors, confirming closure of their settled claims under the scheme," a company statement said.

Besides Canara, other banks have a non-fund exposure to the company through corporate guarantees given to subsidiary companies Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways. Indore based Kalyan Group is most likely investing in SHH which will help the company settle its debt with lenders. The company could not be immediately contacted.