Pune Buildtech and Bank of India settles insolvency case, ET RealEstate

March 23, 2024
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NEW DELHI: Pune Buildtech (PBPL), a wholly-owned subsidiary of DB Hospitality, and Bank of India (BOI) have agreed to file consent terms with National Company Law Appellate Tribunal (NCLAT) – New Delhi pursuant to the one time settlement entered into between them, the company informed in a BSE filing.

DB Hospitality is the hospitality arm of D B Realty.

Accordingly, BOI will withdraw any and all other CIRP proceedings instituted, and actions taken by it under any law against the company and others and as a result the NCLT order dated July 4, 2023 passed against the company shall be set aside.

In 2013, PBPL had sought credit facilities from BOI to meet its business requirement. Accordingly BOI had sanctioned term loan of Rs 225 crore wherein D B Realty had extended the corporate guarantee. Due to defaults in payment of interest, the loan account was classified as non-performing asset in 2015.

In September 2021, BOI had filed a petition under section 7 of the insolvency and bankruptcy code, 2016 before the National Company Law Tribunal (NCLT) – Mumbai to find a resolution. It also invoked the corporate guarantee. As on September 2022, Pune Buildtech was liable to pay Rs 760.38 crore.

NCLT on July 4, 2023, admitted the company petition against which D B Realty approached NCLAT, which granted a stay order.

  • Published On Mar 23, 2024 at 10:01 AM IST

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