Mumbai’s real estate landscape is poised for transformation as Shree Naman Group receives the green light from the National Company Law Tribunal (NCLT) to acquire Radius Infra Holdings. This move breathes new life into the financially troubled Radius Infra, which has been under the Corporate Insolvency Resolution Process since last year.
A central feature of this acquisition is a valuable land parcel in Andheri, a prime location in Mumbai. This land offers a significant development opportunity for the Shree Naman Group. The NCLT-approved resolution mandates that development be completed within a set timeframe, ensuring timely progress.
Shree Naman Group’s proposal received unanimous backing from secured lenders, highlighting the group’s strong position. The plan includes:
Debt Settlement: Shree Naman will settle a portion of the secured debt owed by Radius Infra.
Project Investment: Additional funds will be infused as needed to facilitate project completion.
Before entering insolvency proceedings, Radius Infra faced significant financial challenges, with a substantial debt burden to Yes Bank. The company’s previous repayment plan, involving pledging shares of related entities, ultimately failed.
The Role of NCLT
The NCLT played a crucial role in facilitating this acquisition. As a quasi-judicial body, it adjudicates issues related to Indian companies, including insolvency resolutions. In this case, the NCLT determined the voting power distribution among lenders, ensuring a fair process.
A New Chapter for Andheri’s Real Estate
Shree Naman Group’s acquisition of Radius Infra marks a significant development for Mumbai’s real estate market. The revival of this project has the potential to rejuvenate the Andheri area with new development in the coming years. This deal not only benefits Shree Naman by granting access to a prime land parcel but also offers a resolution for Radius Infra’s creditors and creates new opportunities in the local market.