Delhi Based Supertech Intends to Raise Upto INR 1600 Crore from Oak Tree Financial to Complete Stuck Projects

Delhi Based Supertech to Raise Upto INR 1600 Crore to Complete Stuck Projects

According to MD Mohit Arora, real estate developer Supertech is seeking 1,200-1,600 crore from Oak Tree Financial to complete its stalled projects.

Recently the Supreme Court declined to intervene in the National Company Law Appellate Tribunal's (NCLAT) June 2022 order allowing Supertech's promoters to raise funds on a priority funding basis to complete the projects.

The NCLAT had also advised against forming a creditors' committee and proceeding with the IBC tendering procedure. Supertech has secured priority funding from Oak Tree Financial, one of the largest funds in the globe.

With the assistance of this priority fund, Supertech will complete all of its projects within the next two years and fulfil all of its obligations to homebuyers, lenders, and land authorities as per the company.

After submitting its proposal to raise capital to the NCLAT, Supertech encountered a setback when certain lenders petitioned the Supreme Court, preventing the company from raising capital. Nevertheless, in light of the recent decision, the developer intends to approach the NCLAT once more in order to pursue the fund-raising.

In a ruling, the NCLAT ruled that Supertech's Eco Village-II project, as well as the construction of its other projects, will proceed without interruption. The National Company Law Tribunal (NCLT) had previously issued an order for the Committee of Creditors (CoC) to assume control of Supertech, a company engaged in multiple ongoing initiatives in the National Capital Region (NCR). 

In response to the NCLT's decision, homebuyers filed an appeal with the NCLAT, contesting the ruling.

In a directive, the National Company Law Appellate Tribunal stipulated that the CoC's oversight responsibilities be limited to a single project, with the remaining projects to be constructed under the supervision of the insolvency resolution professional (IRP).