Business News | Supreme Infrastructure Nears ₹2,200-Crore Debt Resolution; NCLT Sets October 31 Deadline, Akshat Khetan-Led AU Corporate Advisory Plays Key Role

Mumbai (Maharashtra) [India], October 29 (ANI): Supreme Infrastructure India Limited (SIIL) has reached a decisive stage in its efforts to resolve ₹2,200.36 crore in legacy principal debt owed to 14 financial creditors, following a significant order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, Court-IV, on October 28, 2026.

The development marks an important milestone in the company’s financial restructuring journey, undertaken through a court-sanctioned Scheme of Compromise and Arrangement under Sections 230 and 231 of the Companies Act, 2013, rather than the conventional insolvency resolution mechanism.

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The Tribunal’s order followed the filing of mutually agreed minutes on October 26, 2026, between Supreme Infrastructure and its three remaining lenders — State Bank of India, Punjab National Bank and Union Bank of India — establishing a framework for completing the outstanding settlement obligations.

The NCLT extended the deadline for completion of payments to October 31, 2026, and directed the lead bank to operationalise the escrow arrangement within two working days. The directions also address appropriation of funds, release of securities and charges, and issuance of the necessary discharge certificates.

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The agreed arrangement includes a provision concerning reimbursement of ₹5 crore and consequences associated with non-compliance with the prescribed deadline. The precise operation and enforceability of these provisions remain governed by the terms of the Tribunal’s order and the agreed minutes.

The restructuring represents a significant development for Supreme Infrastructure, which has pursued a consensual settlement with its lenders while seeking to preserve business continuity and enterprise value.

The Scheme received overwhelming creditor support, securing 93.62 per cent of the votes cast at the financial creditors’ meeting held on May 13, 2024. It was subsequently sanctioned by the NCLT Mumbai on March 28, 2025.

The arrangement addresses principal outstanding debt of ₹2,200.36 crore as of June 30, 2022, excluding accumulated interest, penal interest and associated charges, which are subject to waiver upon successful completion in accordance with the sanctioned Scheme.

According to the earlier advisory release, ₹687.73 crore had already been paid to lenders, with 11 of the 14 financial creditors having received their settlements and released their charges. The remaining obligations are being addressed through the escrow mechanism involving SBICAP Trustee Company Limited.

A significant advisory role in the restructuring has been attributed to AU Corporate Advisory & Legal Services, led by its Founder, Akshat Khetan, which, according to the firm’s account, acted as legal and strategic adviser to the promoters of Supreme Infrastructure India Limited.

The advisory firm’s stated involvement encompassed conceptualisation of the restructuring framework, negotiations with the lender consortium, coordination of legal and financial strategies, and assistance in implementing the sanctioned Scheme.

The complex assignment required coordination among financial institutions, company stakeholders, investors and legal representatives to advance a commercially sustainable resolution.

The proceedings before the NCLT were conducted by Sujit Lahoti & Associates, with Advocate Rohan Agrawal also representing the company in the legal proceedings.

In a statement attributed to him in the advisory firm’s earlier release, Akshat Khetan, Founder of AU Corporate Advisory & Legal Services, said:

“This outcome is the result of patient, principled engagement with every lender in the consortium. Our brief from the promoters was clear: honour every rupee committed under the Scheme, keep the company out of insolvency and get to closure. Today’s order, passed on terms every lender has signed, does exactly that.”

Khetan also acknowledged the constructive approach of the lending institutions, the Tribunal’s emphasis on implementation and the contributions of the legal teams involved in advancing the settlement.

Highlighting the significance of the restructuring for the company’s future, Siddharth Jain, Chief Financial Officer of Supreme Infrastructure India Limited, said in the statement supplied for the earlier report:

"The restructuring marks a defining moment in Supreme Infrastructure’s journey towards financial stability and sustainable growth. Resolving legacy debt obligations of this magnitude through a consensual, court-sanctioned framework is a significant achievement.”

“With the resolution approaching its final stages, our focus is on strengthening the balance sheet, improving operational efficiencies and positioning the company to capitalise on emerging opportunities in India’s infrastructure sector. We believe this development will provide a strong foundation for long-term revival and growth,” Jain added.

The restructuring assumes significance for India’s infrastructure sector, where delayed project payments, prolonged execution timelines, high financing costs and accumulated debt obligations have historically created financial challenges for several enterprises.

Unlike proceedings under the Insolvency and Bankruptcy Code, a compromise arrangement under the Companies Act can enable a financially stressed company to negotiate settlements with creditors while continuing its business operations under existing management, subject to the sanctioned terms.

The Supreme Infrastructure case illustrates the potential of creditor consensus, judicial supervision and coordinated financial and legal intervention in addressing substantial corporate debt outside formal insolvency proceedings.

For lenders, the arrangement provides a structured recovery mechanism. For Supreme Infrastructure, successful implementation could substantially reduce historical financial liabilities, strengthen balance-sheet visibility and support renewed operational growth.

Headquartered in Mumbai and listed on the BSE and NSE, Supreme Infrastructure India Limited has an established presence across roads, bridges, buildings, water and power infrastructure projects.

The transaction also highlights the role of integrated financial and legal advisory services in facilitating complex debt settlements involving multiple financial institutions and competing commercial considerations.

With the majority of creditors already settled and the remaining obligations approaching the final implementation stage, Supreme Infrastructure is positioned to take an important step towards resolving its legacy financial exposure.

Successful completion of the NCLT-directed formalities would mark a major milestone in the company’s financial revival and could provide a useful reference for other stressed infrastructure enterprises exploring negotiated, court-supervised restructuring mechanisms.

The ₹2,200-crore resolution underscores the potential of financial discipline, lender cooperation and strategic legal intervention in enabling corporate revival while preserving business continuity and stakeholder value. (ANI)

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