Real Estate Focussed Fund Experion Developers Set To Acquire Dignity Buildcon

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Experion Developers Singapore’s real estate focussed fund received the highest votes for Blackstone-backed besieged Dignity Buildcon in a deal that would imply a 50% recovery for lenders originally led by Stanchart Bank, as per the application filed by the resolution expert with the bankruptcy court.

Experion Developers offered Rs 450 crore for the real estate developer Dignity Buildcon-a company involved in developing commercial towers on Golf Course Extension Road, Gurgaon.

The resolution of Dignity Developers, which was delayed because of a series of litigations, was eventually approved by 99.7 of lenders by value.

EY backed Shailendra Ajmera, who changed the former RP in January 2022, received three plans from Experion, M3M India and Madhav Dhir and Alok Dhir, the promoters of Alchemist Asset Reconstruction Company. Sattva Developers, also in the fight, but later they withdrew its offer.

The RP admitted Rs 1065 crore dues from lenders, trade creditors and workers. As the, admitted claims of lenders stood at Rs 1006.7 crore.

Experion offered Rs 450 crore to secured creditors, Rs 2.5 crore each to unsecured trade creditors, and Rs 97 lakhs to workers.

Among major lenders, Standard Chartered Bank had the highest debt of 49.8%, three Blackstone (BREP Asia) real estate funds held 10.16% of debt, and Alchemist ARC had 35.36% of debt.

The Standard Chartered Bank and Blackstone’s fund BREP traded their debt to Experion Capital in January and February 2023, respectively. Experion Capital, which acquired almost 60% of debt, is also owned by the winning bidder.

The company was known for collapse in April 2019. The erstwhile RP received 21 expressions of interest, but ultimately, only about four applicants- Sattva, Safal Constructions, M3M and Dhirs submitted resolution plans.

In the middle of December 2020 and March 2021, the erstwhile RP had held voting on the plans by four bidders at least half a dozen times. In each of them, Sattva Construction received 64.64% voting, which is slightly below the 66% mandatory vote needed to pass any resolution under the Insolvency and Bankruptcy Code.


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