KVIR Towers’ committee of creditors advised by Khaitan & Co On Pre-Packaged Insolvency Process
KVIR Towers’ committee of creditors advised by Khaitan & Co on pre-packaged insolvency process
Khaitan & Co advised on one of the select PPIRP matters approved following notification of the pre-pack regime in 2021.
The committee of creditors of KVIR Towers Private Limited, comprising Pridhvi Asset Reconstruction and Securitisation Company Limited, has been advised by Khaitan & Co during the pre-packaged insolvency resolution process of the company.
Introduced under the Insolvency and Bankruptcy Code (IBC) 2016 in India, the pre-packaged insolvency resolution process (PIRP) is a faster, structured and less disruptive insolvency resolution mechanism designed specifically for micro, small and medium enterprises (MSMEs), offering them a debtor-in-possession model while allowing financial creditors oversight.
A micro-enterprise registered under the Ministry of Micro, Small and Medium Enterprises, KVIR Towers Pvt. Ltd. filed for insolvency under section 54C of the IBC 2016 citing financial distress aggravated by the Covid-19 pandemic, decreased purchasing power and project launch delays. KVIR Towers Pvt. Ltd. faced considerable challenges owing to default in loan repayment by its principal debtor RG Residency Pvt. Ltd., poor collections and non-sale of inventory. On February 20, 2024, the company was admitted into the PPIRP by the NCLT and Rajeev Lochan was appointed as the resolution professional (RP). A committee of creditors (CoC) was formed and the corporate debtor submitted a resolution plan. Approved by the CoC with 100% voting share, the resolution plan proposes a total plan value of ₹445.03 crores. The resolution plan was approved by the NCLT on December 12, 2024 and included a ₹202.71 crores payment to the Greater Noida
Authority to be generated by the company through sale of units in the company’s project and fundraising. Khaitan & Co got the chance to advise on one of the very few PPIRP matters approved following notification of the pre-pack regime in 2021, especially in the real estate sector. Dr Siddharth Srivastava (Partner, Restructuring & Insolvency/Banking & Finance), Mohit Kishore (Counsel), Udita Singh (Senior Associate) and Shikha Mohini (Associate) led the PPRIP of KVIR Towers.
