Real estate fund Experion Developers set to acquire Dignity Buildcon
Real Estate

Real estate fund Experion Developers set to acquire Dignity Buildcon

According to an application filed by the resolution professional with the bankruptcy court, Singapore's real estate focused fund Experion Developers received the most votes for Blackstone-backed besieged Dignity Buildcon in a deal that would imply a 50% recovery for lenders originally led by Stanchart Bank.

Experion Developers offered Rs 450 crore for the real estate developer Dignity Buildcon, which is involved in the development of commercial towers on Gurgaon's Golf Course Extension Road. The Dignity Developers resolution, which was mired in a series of lawsuits, was eventually approved by 99.7% of lenders by value.

Shailendra Ajmera, who took over as RP in January 2022, was backed by EY and received three plans from Experion, M3M India, and Madhav Dhir and Alok Dhir, the promoters of Alchemist Asset Reconstruction Company. Sattva Developers, who was also in the running, later withdrew its bid.

The RP accepted Rs 1065 crore in lender, trade creditor, and employee claims. Lenders' admitted claims amounted to Rs 1006.7 crore. Experion offered secured creditors Rs 450 crore, unsecured and trade creditors Rs 2.5 crore each, and employees Rs 97 lakhs.

Standard Chartered Bank had the highest debt of 49.8% among major lenders, three Blackstone (BREP Asia) real estate funds held 10.16% of debt, and Alchemist ARC had 35.36% of debt. Interestingly, in January and February 2023, Standard Chartered Bank and Blackstone's fund BREP both sold debt to Experion Capital. The winning bidder also owns Experion Capital, which acquired nearly 60% of the debt. In April 2019, the company was declared insolvent.

Although the former RP received 21 expressions of interest, only four applicants- Sattva, Safal Construction, M3M, and Dhirs- submitted resolution plans. Between December 2020 and March 2021, the erstwhile RP had held voting on the plans by four bidders at least half a dozen times. In each of them, Sattva Construction received 64.64% voting, which is slightly below the 66% requisite vote needed to pass any resolution under the Insolvency and Bankruptcy Code.

Also Read
Navi Mumbai Airports to get operational by next year
Indian airports' revenues to rise next fiscal year

According to an application filed by the resolution professional with the bankruptcy court, Singapore's real estate focused fund Experion Developers received the most votes for Blackstone-backed besieged Dignity Buildcon in a deal that would imply a 50% recovery for lenders originally led by Stanchart Bank. Experion Developers offered Rs 450 crore for the real estate developer Dignity Buildcon, which is involved in the development of commercial towers on Gurgaon's Golf Course Extension Road. The Dignity Developers resolution, which was mired in a series of lawsuits, was eventually approved by 99.7% of lenders by value. Shailendra Ajmera, who took over as RP in January 2022, was backed by EY and received three plans from Experion, M3M India, and Madhav Dhir and Alok Dhir, the promoters of Alchemist Asset Reconstruction Company. Sattva Developers, who was also in the running, later withdrew its bid. The RP accepted Rs 1065 crore in lender, trade creditor, and employee claims. Lenders' admitted claims amounted to Rs 1006.7 crore. Experion offered secured creditors Rs 450 crore, unsecured and trade creditors Rs 2.5 crore each, and employees Rs 97 lakhs. Standard Chartered Bank had the highest debt of 49.8% among major lenders, three Blackstone (BREP Asia) real estate funds held 10.16% of debt, and Alchemist ARC had 35.36% of debt. Interestingly, in January and February 2023, Standard Chartered Bank and Blackstone's fund BREP both sold debt to Experion Capital. The winning bidder also owns Experion Capital, which acquired nearly 60% of the debt. In April 2019, the company was declared insolvent. Although the former RP received 21 expressions of interest, only four applicants- Sattva, Safal Construction, M3M, and Dhirs- submitted resolution plans. Between December 2020 and March 2021, the erstwhile RP had held voting on the plans by four bidders at least half a dozen times. In each of them, Sattva Construction received 64.64% voting, which is slightly below the 66% requisite vote needed to pass any resolution under the Insolvency and Bankruptcy Code. Also Read Navi Mumbai Airports to get operational by next year Indian airports' revenues to rise next fiscal year

Next Story
Infrastructure Urban

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000