26 August 2019: Resolution professional of debt-ridden Ariisto Developers has invited fresh bids from prospective buyers to revive the Mumbai-based real estate firm which has gone under insolvency proceedings since last year.
Mumbai-based developer Rustomjee Group had emerged as the lone bidder in the first round of bidding. However, the committee of creditors (CoC) has rejected the resolution plan submitted by Rustomjee Group, following which a fresh round of bidding has been invited, according to two people aware of the matter.
“Fresh expression of interest (EOI) have been invited…We have received response from prospective resolution applicants and list will be finalized by September 10th,” said Jayesh Sangkhrajka, resolution professional appointed by NCLT to manage the company. He declined to comment further on the matter. Last date for submitting the bids has been set for 1st of September.
In November 2018, the National Company Law Tribunal (NCLT) had admitted insolvency proceedings against Ariisto Developers which owed around ₹2500 crore to various lenders that includes HDFC Ltd, IIFL Trustee Ltd and Indiabulls Housing Finance Ltd. The builder currently has a housing project spread across 32 acres land in Mumbai’s Mulund area that is yet to take off.
Boman Irani, chairman and managing director, Rustomjee Group, said that the company would be participating in the second round of bidding with a revised offer.
“Our earlier offer was market based. It was little conservative as it was based on the current market situation. Obviously their (Ariisto’s) outstandings are a lot more. I guess there are many secured and unsecured credit. May be they (creditors) thought if they called for fresh bids they would get better offer,” Irani said.
Apart from Rustomjee, few other developers including Wadhwa Group have already submitted their EOIs. “Unlike last time, there could be atleast three-four bidders,” said the first person mentioned above.
“We are keenly looking at stressed opportunities through IBC where we will be partnering with few Stress Assets Funds, we are also working directly with lenders to operationally turnaround their stuck projects, ” said Vrushank Mehta, vice president corporate strategy and investment, Wadhwa Group.