Insolvency Proceedings against Embassy quashed

Real estate developer Embassy Developments Ltd said the National Company Law Appellate Tribunal (NCLAT), New Delhi, which has set aside an earlier order admitting insolvency proceedings against the company.

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Earlier, the National Company Law Tribunal, New Delhi in an order dated 9 December had directed insolvency proceedings against the company.

The Corporate Insolvency Resolution Process (CIRP) initiated against the company stands quashed and closed. Embassy Developments stands fully relieved from all insolvency proceedings, the company said in a statement.

The company reiterated that it remains financially sound and continues to operate in the normal course, with no impact on its business operations, projects, or stakeholders.

“This was a legacy issue whereby a letter by Indiabulls Real Estate to fund any shortfall in equity for a past affiliate has been misconstrued and misrepresented as a corporate guarantee. We pursued the appeal with full confidence in the strength of our case. We are aware of the pain this issue has caused our shareholders and welcome the relief this brings to the shares of the Company. Our business and operating performance has performed strongly throughout this period, reflecting the resilience of our platform and the strength of our underlying fundamentals,” Jitu Virwani, Chairman, Embassy Developments, said in a statement.

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