Supreme Infrastructure India Limited has announced a significant milestone in its financial restructuring process. The company’s proposed scheme of compromise and arrangement with its financial creditors has received a favorable outcome from both BSE Limited and National Stock Exchange of India Limited (NSE). After a thorough review, both exchanges have indicated no adverse comments regarding the scheme, allowing it to proceed for approval by the National Company Law Tribunal (NCLT).

Overview of the Proposed Scheme

The scheme is designed to facilitate a compromise between Supreme Infrastructure India and its financial creditors, enabling the repayment and satisfaction of financial debts owed to the creditors. This process is initiated under Section 230 of the Companies Act, 2013, which governs the compromise and arrangements with creditors. The draft scheme outlines various mechanisms for debt repayment, including monetization of assets, internal accruals, and the potential issuance of additional capital by the company, in compliance with Section 62(1)(c) of the Companies Act, 2013.

Regulatory Approvals and SEBI Guidelines

Both BSE and NSE have issued their observation letters, confirming that the scheme complies with regulatory standards and does not present any concerns for the creditors or investors. The approval from the exchanges comes after careful scrutiny and adherence to SEBI’s Listing Obligations and Disclosure Requirements (LODR). A key component of the scheme involves the issuance of further capital, which must comply with SEBI’s (Issue of Capital and Disclosure Requirements) Regulations, 2018. This includes ensuring that equity shares are issued in dematerialized form only and that all applicable provisions of the Companies Act are adhered to.

The exchanges have also emphasized that any changes to the scheme must be approved by SEBI, and the company must ensure that all observations made by the regulators are incorporated in the petition to be filed with the NCLT.

Next Steps: NCLT Filing

With the necessary observations and approvals from the exchanges and SEBI, Supreme Infrastructure India Limited will now proceed to file the draft scheme with the National Company Law Tribunal (NCLT). The company is required to comply with the guidelines issued by the exchanges and ensure that all financial statements included in the scheme are up to date (not more than six months old).

Once the NCLT approves the scheme, further details will be made available to the public, ensuring transparency and compliance with legal and regulatory requirements. The scheme of arrangement will be displayed on the company’s website and the stock exchanges, enabling stakeholders to stay informed about the ongoing developments.

Implications for Investors and Stakeholders

This approval marks a critical step towards resolving the company’s debt obligations and improving its financial stability. The debt restructuring process aims to provide a structured repayment plan, thereby safeguarding the interests of creditors and ensuring the company’s long-term sustainability.