The developer has defaulted on its liabilities to RBL Bank, State Bank of India, and Axis Bank.
The default is on a principal amount of Rs 67.6 crore and an interest amount of Rs 9.6 crore. The real estate developer defaulted on these payments on December 30.
The company owes Rs 66.14 crore as principal to RBL Bank at a 12.5% interest rate, a principal amount of Rs 172 crore to the State Bank of India at 9.05% and Rs 18.63 crore to Axis Bank at a 9.75% interest rate as on December 30. All of these are secured loans, the company said in a regulatory filing.
Peninsula Land had defaulted on its debt obligation earlier too. In 2020, the developer defaulted on its loan obligations of Rs 2.35 crore to the State Bank of India. This included principal of Rs 88 lakh and Rs 1.47 crore in interest accrued thereon.
In late 2019, the company entered into a debt-asset swap arrangement with Housing Development Finance Corporation (HDFC) against encumbrance over its nearly 67,000-sq ft commercial building Peninsula Spenta in central Mumbai’s Lower Parel locality.
The company is known for developing India’s first mall, Crossroads, in South Mumbai and converting first mill land into a commercial complex, Peninsula Corporate Park, in Central Mumbai’s business district, Lower Parel.
Since 1997, the company has developed nearly 8 million sq ft in Mumbai. Apart from Mumbai, the company has projects in Pune, Nashik, Lonavala, Bangalore, and Goa. Most of its projects came up on erstwhile textile mill lands or joint developments with landowners.
On a consolidated basis, the company’s debt level was at Rs 2,310 crore as on July 2019, including project-level debt, and since then the company has managed to reduce the same.
For the quarter ended September, the company reported a net loss of Rs 67.07 crore and a total income of Rs 71.38 crore.
The company has been reporting a net loss at a consolidated level over the last several quarters. During the last financial year 2020-21 (April-March), it reported a net loss of Rs 80.71 crore and a total income of Rs 105.19 crore.