MUMBAI: Canara Bank is seeking offers from financial institutions and asset reconstruction companies (ARCs) to sell its ₹577 crore debt concerning the real estate firm Supreme Housing and Hospitality, with a reserve price set at ₹500 crore through a Swiss challenge auction.
The Bangalore-based bank has also filed a petition with the Mumbai NCLT to restart insolvency proceedings against the company after a one-time settlement (OTS) proposal in July did not materialize, according to a knowledgeable source.
“This debt auction allows the bank to gauge interest from investors while waiting for guidance from the Mumbai NCLT. The company previously made an OTS offer of ₹450 crore in July, which led to the withdrawal of the initial insolvency application. However, as the company failed to meet its commitments, a new bankruptcy petition has been filed,” said the same source.
Canara Bank is the primary lender to Supreme Housing, holding outstanding dues of ₹577 crore. In its notice for the Swiss auction, the bank has invited initial bids to be submitted by February 21 and will announce an anchor bidder by February 25. An electronic auction to outbid the initial offer will take place on March 13, the bank announced.
Last July marked the second instance of the company being withdrawn from insolvency following a similar settlement in November 2022. Mumbai-based Supreme Hospitality primarily focuses on residential real estate projects in Pune and Mumbai.
