Firm Matters

Khaitan & Co advised EKA Life Realty LLP and EKA Living Pvt Ltd (EKA Group) on a structured revival, resolution and investment framework for 'The Resident Tower' real estate project in Noida, Uttar Pradesh (Project).

The Project, developed by Hale Realtors Pvt Ltd, faced significant lender exposure, homebuyer issues, and construction completion obligations, requiring a comprehensive revival framework.

EKA Group and Noida Holdings Pvt Ltd (NHPL) submitted this framework as co-investors.

The transaction settled the financial exposure of ECL Finance Ltd and Edelweiss Real Estate Opportunities Fund.

A key aspect was addressing a pending corporate insolvency resolution application under Section 7 of the Insolvency and Bankruptcy Code 2016, which was resolved as part of the revival plan.

Under the framework, EKA Life Realty LLP and NHPL committed to a strategic investment of approximately INR 75 crores in the Project, while EKA Living Private Limited was appointed as the strategic resolution partner for governance oversight, regulatory coordination, inventory monetisation and implementation of the Project revival plan.

EKA Group and NHPL were allocated Project inventory in consideration of their investment commitments and role in facilitating debt resolution.

The Firm engagement encompassed drafting, negotiation and finalisation of the transaction documents.

The transaction reflects the growth of India's private credit market and structured private credit as a viable revival avenue for stressed real estate projects, integrating lender resolution, insolvency management, governance restructuring and milestone-based investment.