SHH promoters deposit ₹200 crore to settle ₹648 crore dues

Mumbai: The promoters of Mumbai-based real estate company Supreme Housing and Hospitality (SHH) have deposited ₹200 crore in a bank account as part of a deal to settle its ₹648 crore dues to a consortium of lenders led by Canara Bank, people familiar with the details said.

The total value of the one-time settlement is ₹518 crore, of which about ₹475 crore will come to Canara Bank that has the only fund-based exposure to the developer. The rest of the funds will be distributed among four other lenders.

SHH owes Canara Bank ₹593 crore, making the settlement around an 80% recovery for the Bangalore- based lender.


"The company has deposited ₹200 crore into a no lien account earlier this month. Now, each bank will have to seek their board approvals. Since the company is admitted for insolvency, 90% of the lenders must approve the settlement for it to be enforced," said a person familiar with the details.

Canara Bank did not reply to an email seeking comment.

Canara initiated a second insolvency process, which was admitted in May this year. Other banks have a non-fund exposure to the company through corporate guarantees given to subsidiary entities-Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways.

These other banks include State Bank of India, Punjab National Bank, Indian Bank and Bank of India.

"Following a petition in the appellate tribunal, the company has been given time till July 28 to deposit the full amount. The next hearing in the case is on August 7 before which banks have to approve this settlement. The bankruptcy process has been suspended till this time," said the person cited above. The company did not reply to email seeking comment.

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.