NCLT approves Rs 548-crore resolution plan for Arena Superstructures
The NCLT has approved the Rs 584.50 crore plan submitted by Purvanchal Projects Pvt.Ltd for the resolution of Arena Superstructures Private insolvency case.
As per the resolution plan for Arena Superstructures, the successful resolution applicant (Purvanchal Projects) will deliver the homebuyers all the flats. The admitted claims of homebuyers were Rs 498 crore. Financial creditors (other than the homebuyers) get Rs 70.5 crore and operational creditors get Rs 10 crore as per the plan. The plan also provides for Rs 6 crore as CIRP cost. The total payout for employees and workmen was Rs 11.76 lakh.
| Category of creditors/payments | Amount provided for in the plan |
| CIRP Cost | Rs 6 crore |
| Secured Financial Creditor (Asset Care and Reconstruction Enterprise Limited) | Rs 70 crore |
| Unsecured Financial Creditor (Dhankalash Distributors Private Limited) | Rs 50 lakh |
| Financial Creditors in a Class (Homebuyers/Allottees) | Rs 498 crore (by way of delivery of flats) |
| Workmen & Employees | Rs 11.76 lakh |
| Operational Creditors (including Statutory Authorities) | Rs 10 crore |
| Total | Rs 584.5 crore |
Infusion of funds
As per the resolution plan, Purvanchal Projects will infuse a sum of Rs. 20 crore in corporate debtor (Arena Superstructures) in the following manner:
A: The upfront cash infusion will be Rs 10 crore on or before the transfer date and will be utilized towards acquisition of equity shareholding of the corporate debtor, payment of CIRP Cost, mobilization of resources and restarting the construction works of the project, and meeting the working capital and capital expenditure requirements of the corporate debtor.
B: Further infusion of funds will be in the form of high-end equipment, machinery, construction materials, etc. valued at Rs 10 crore within six months from the Transfer Date.
C: The Performance Bank Guarantee of Rs 5 crore to be submitted by the resolution applicant in terms of the RFRP, which will be cancelled and/or returned to the Resolution Applicant within 7 working days from the date of the upfront cash infusion of Rs 10 crore into the Corporate Debtor.
D: In addition to the above, this resolution plan relies on the internal accruals/receivables/reserves and surplus of the corporate debtor, especially the receivables from homebuyers/allottees against their respective flats as also the sale of unsold inventory by the Corporate Debtor in the market, the proposed Special Window for Affordable and Mid Income Housing (SWAMIH) funding subject to eligibility, and/or raising of capital from banks/financial institutions at the sole discretion of the Resolution Applicant/Corporate Debtor, in order to ensure successful completion of the Project and implementation of this Plan.
Insolvency proceedings against Arena Superstructures was initiated by Dhankalash Distributors Private Limited after the former defaulted on a payment of Rs 1.64 crore.
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