₹464 crore settlement to repay dues; SIIL signs agreements with 13 lenders

Mumbai, July 28, 2025 Supreme Infrastructure India Ltd (SIIL) has initiated a ₹2,200 crore debt resolution plan. This marks a major step toward settling its outstanding financial obligations. The company operates in the construction and engineering sector. It reached a court-approved settlement plan with 13 lenders. The company resolved the matter under the Insolvency and Bankruptcy Code.

As part of the plan, SIIL and the lenders executed nine escrow agreements and created 11 accounts to facilitate repayments. The NCLT approved the scheme in March under Sections 230 and 232 of the Companies Act. The plan allows the firm to restructure and settle its dues through a court-monitored mechanism.

The approved scheme offers a full and final settlement of ₹464 crore to 13 lenders. These include major banks like State Bank of India, ICICI Bank, Axis Bank, HDFC Bank, Punjab National Bank, Union Bank of India, Bank of India, and JM Financial Asset Reconstruction Company. Of the ₹464 crore, ₹183.29 crore will come from asset monetisation.

In addition, the company will raise ₹147.23 crore through preferential equity allotment. The remaining ₹133.48 crore will come from the sale of charged assets.

A large share of the funds will move through structured escrow accounts. Meanwhile, State Bank of India will act as the escrow agent, while SBICAP Trustee Company will manage the documentation. These accounts will streamline cash flows from asset sales and equity allotments and ensure prompt distribution to creditors.

Although most liabilities are being settled, certain issues such as pending bank guarantees still need to be resolved. SIIL expects to resolve these concerns in the coming weeks. Legal support came from Radhika Dixit, senior partner at Rajani Associates, and Satyadarshi Kunal. SIIL’s internal team assisted with the transaction.

Despite the broad consensus, ICICI Bank, SRS Private Investment Powai, and the Central GST & Excise Department initially raised objections. Later on, however, ICICI Bank decided to withdraw its objection. As a result, only two objections remain under review. The matter concerning the GST department remains sub judice.

The court-monitored resolution provides a structured path for SIIL to exit its debt crisis while securing lender interests. With monetisation underway and equity injections planned, the company aims to stabilise operations and restore creditor confidence.

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