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Mantra Properties, Solitaire submit bids to acquire realty firm D S Kulkarni through insolvency

Mantra Properties & Developers and Solitaire group are among the three companies which have submitted their bids to acquire Pune-based listed realty firm D S Kulkarni Developers through the insolvency process.

In September 2019, the National Company Law Tribunal (NCLT), Mumbai Bench ordered the commencement of corporate insolvency resolution process (CIRP) in respect of D S Kulkarni Developers Ltd under the provisions of the Insolvency and Bankruptcy Code, 2016, on an application filed by Bank of Maharashtra.

Manoj Kumar Agarwal, the Resolution Professional (RP), is managing the business of the debt-laden company and also carrying out the insolvency process.

According to sources, Mantra Properties and Solitaire group have submitted their bids to acquire D S Kulkarni.

The third company has submitted its resolution plan to acquire only one project of the embattled firm.

A total claim of around ₹1,750 crore has been made, out of which nearly ₹1,050 crore pertains to 12 banks and other financial institutions.

Institutional financial creditors have 66.7 per cent voting rights in the Committee of Creditors (CoC). Homebuyers and fixed deposit holders have nearly 17 per cent voting rights.

As per the sources, Mantra Properties, in its resolution plan, has proposed to complete pending flats for over 700 homebuyers.

For institutional financial creditors, it has proposed to transfer land worth ₹800 crore to a special purpose vehicle (SPV).

Mantra will transfer all the debt of institutional financial creditors to this land SPV, which will issue Optionally Convertible Debentures (OCDs) to them.

The Land Bank SPV will issue OCD carrying a coupon rate of 1 per cent per annum to the institutional financial creditors equivalent to debt transferred to Land Bank SPV as a debt instrument. This OCD shall be repaid by the Land Bank SPV over a period of five years.

Mantra Properties has proposed to incorporate a special purpose company 'MPDPL SPV' for the purposes of acquiring the majority stake in D S kulkarni Developers. Through the MPDPL SPV, it proposed to infuse an upfront payment of up to ₹201 crores (part equity and/or part debt or quasi-equity) within 90 days from the approval date.

Sources said the bids of all the three contenders are being evaluated currently and the same will be discussed in the next meeting of the CoC. The last meeting was held on June 5.


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