Khaitan & Co has advised the committee of creditors, comprising of Pridhvi Asset Reconstruction and Securitisation Company Limited, of KVIR Towers Private Limited during the pre-packaged insolvency resolution process of the Company.
The Pre-Packaged Insolvency Resolution Process (PIRP) is a structured, faster, and less disruptive insolvency resolution mechanism introduced under the Insolvency and Bankruptcy Code (IBC), 2016 in India. It is specifically designed for micro, small, and medium enterprises (MSMEs), providing them with a debtor-in-possession model while allowing financial creditors oversight
KVIR Towers Pvt. Ltd., a micro-enterprise registered under the Ministry of Micro, Small and Medium Enterprises, filed for insolvency under Section 54C of the Insolvency and Bankruptcy Code (IBC), 2016, citing financial distress exacerbated by the COVID-19 pandemic, reduced purchasing power, and delays in project launches. The company, which operates in the real estate sector, faced significant challenges due to non-sale of inventory, poor collections, and defaults in loan repayments by its principal debtor, RG Residency Pvt. Ltd., for which KVIR Towers had acted as a guarantor.
The NCLT admitted the company into the PPIRP on February 20, 2024, and appointed Rajeev Lochan as the Resolution Professional (RP). A Committee of Creditors (CoC) was formed, and a resolution plan was submitted by the Corporate Debtor.
The resolution plan, approved by the CoC with 100% voting share, proposes a total plan value of ₹445.03 crores.
It was thereafter approved by the NCLT on December 12, 2024. The approved resolution plan includes payment of ₹202.71 crores to the Greater Noida Authority to be generated by the Company by way of sale of units in the Company’s project and raising of funds.
Khaitan & Co had the opportunity of advising on one of the very few PPIRP matters approved post notification of the pre-pack regime in 2021, especially in the real estate sector.
The PPRIP of KVIR Towers was led by Dr. Siddharth Srivastava (Partner, Restructuring & Insolvency/ Banking & Finance), Mohit Kishore (Counsel), Udita Singh (Senior Associate) and Shikha Mohini (Associate).
KVIR Towers is in the business of real estate and construction with projects in Greater Noida and qualifies as a ‘small enterprise’ in terms of the Udyam Registration Certificate issued by the Ministry of Micro, Small and Medium Enterprises.
If you would like your Deals, Columns, Press Releases to be published on Bar & Bench, please fill in the form available here.