Guarantor Valor Estate Set To Get Relief From Bank Of India’s Insolvency Action

Bank of India and borrower Pune Buildtech reached a one-time settlement over outstanding dues
Guarantor Valor Estate Set To Get Relief From Bank Of India’s Insolvency Action

Corporate guarantor Valor Estate Ltd., formerly DB Realty Ltd., is set to get a relief from Bank of India’s insolvency action as the financial creditor reached a one-time settlement with borrower Pune Buildtech Private Ltd. over outstanding dues.

Pune Buildtech, a part of Valor Estate, and Bank of India have agreed to file consent terms with the National Company Law Appellate Tribunal (NCLAT) pursuant to the one-time settlement entered into between the parties, Valor Estate said in a stock exchange announcement today.

Accordingly, Bank of India will withdraw any and all other corporate insolvency resolution proceedings instituted, and other undertaken actions under any law against the company and others in the matter, it added.

“As a result, the NCLT (National Company Law Tribunal) order dated 4 July 2023 passed against the company shall be set aside,” Valor Estate said.

The real estate developer didn’t disclose the settlement amount and the outstanding dues.

The Background

Valor Estate was admitted into insolvency resolution in July 2023 by the Mumbai bench of the NCLT following a petition by Bank of India. The lender had invoked the corporate guarantee given by the developer for loan availed by Pune Buildtech.

Mumbai-based Valor Estate later challenged the bankruptcy tribunal’s order before the NCLAT, which issued a stay order against the NCLT’s verdict.

The state-run lender had filed the insolvency application against Valor Estate claiming a default of 760 crore rupees ($91 million) as on 30 September 2022 plus interest, according to the Economic Times.

“This is a very positive development as the long pending issue between the Bank of India and the company stands resolved without any liability whatsoever to the company,” Valor Estate said in the stock exchange announcement today.

Note: $1 = 83.1525 Indian rupees

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