NEW DELHI: Housing Development and Infrastructure Ltd (HDIL), the Mumbai-based real estate company undergoing the corporate insolvency resolution process, is likely to be liquidated after no bidders showed interest in acquiring the stressed company. The resolution professional received no resolution plan even as the threshold of 270 days got over on April 28, 2021.
According to sources, no bidders showed interest in acquiring HDIL’s assets as the latter is facing multiple litigations. Expromoters of HDIL are also involved in the PMC Bank loan scam. According to sources close to the resolution process, committee of creditors accounting for 80% of vote share are in favour of liquidation, and that the process is on hold as one of the financial creditors has moved an interlocutory application.
The Mumbai bench of the National Company Law Tribunal (NCLT) has refrained the resolution professional from taking steps for liquidation until the disposal of the said application. Meanwhile, 7,000 homebuyers could be facing an uncertain future as they fear large haircuts. The homebuyers are unsecured financial creditors, and if the firm goes for liquidation, they may get a fraction of their dues.
Homebuyers have put in Rs 875 crore as their total claim. HDIL owes around Rs 8,000 crore to all its creditors. Owing to pending litigations, the resolution professional had informed in the sixth meeting of CoC that it was getting difficult for him to keep the firm as a going concern as it continues to incur costs including employee cost (which forms a substantial portion of monthly running cost) in the absence of any significant revenue. The resolution professional has sought advice from the CoC for rationalisation of salaries of employees of HDIL.