The promoters of 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. According to reports from The Economic Times, the total value of the one-time settlement is ₹518 crore, with about ₹475 crore coming to Canara Bank that has the only fund-based exposure to the developer. The remaining funds will be distributed among four other lenders.
SHH owes ₹593 crore to Canara Bank, making the settlement around an 80% recovery for the Bangalore-based lender. As reported by The Economic Times, the company has deposited ₹200 crore into a no lien account earlier this month. Each bank will now 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.
Canara Bank initiated a second insolvency process, which was admitted in May this year. 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, with the bankruptcy process suspended until this time.
Other banks have non-fund exposure to the company through corporate guarantees given to subsidiary entities - Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways. As reported by The Economic Times, these other banks include State Bank of India, Punjab National Bank, Indian Bank and Bank of India. Indore based Kalyan Group is most likely investing in SHH which will help the company settle its debt with lenders.
