Consortium Wins NCLT Nod To Acquire DS Kulkarni Developers

A consortium of Ashdan Properties Private Ltd., Classic Promoters and Builders Private Ltd., and Atul Builders recently received the National Company Law Tribunal’s (NCLT) approval to acquire the bankrupt D.S. Kulkarni Developers Ltd.

The bankruptcy court approved the consortium’s resolution plan for the Pune, Maharashtra-based developer real estate developer on 23 June, according to the NCLT’s order.

The consortium proposes to make a payment of 826.30 crore rupees ($101 million) to D.S. Kulkarni’s stakeholders in cash and debentures in addition to bearing the corporate insolvency resolution process costs, the order showed.

The amount includes an upfront payment of 30.12 crore rupees, as well as 536.18 crore rupees in Series-I non-convertible debentures (NCDs) and 260 crore rupees in Series-II NCDs. The homebuyers will be given flats against their claim amount.

Total admitted claim of D.S. Kulkarni’s creditors stood at over 1,810 crore rupees, according to the order. The company’s average fair value was estimated at 835.78 crore rupees and average liquidation value at 596.73 crore rupees, the order showed.

The company’s financial creditors include State Bank of India, ICICI Home Finance Company Ltd., Central Bank of India and Bank of Maharashtra.

D.S. Kulkarni was admitted into insolvency resolution on 26 September 2019 following a petition filed by Bank of Maharashtra, claiming a default of about 119.48 crore rupees. The NCLT later appointed Manoj Kumar Agarwal as the resolution professional of the company.

Subsequently, the resolution professional received resolution plans from three prospective applicants and creditors later approved the Ashdan consortium resolution plan.

The resolution plan was approved by the Mumbai bench of the NCLT, comprising Judicial Member H.V. Subba Rao and Technical Member Shyam Babu Gautam.

Note: $1 = 82.0964 Indian rupees

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