Stalled real-estate CIRP: triage with homebuyer CoC dynamics

The situation

A mid-sized residential project in a Tier-1 periphery had entered CIRP with construction roughly two-thirds complete and several hundred homebuyers as financial creditors. A special-situations fund asked us to tell them, quickly, whether the asset was worth a closer look before the EOI window.

The complication was the committee of creditors. Under the IBC, homebuyers vote as a class of financial creditors, and here they held the swing vote. A clean balance-sheet view of the debt told us almost nothing about how the CoC would actually behave.

What we did

We triaged the public record first — the Form G, the information memorandum summary, and the IRP's filings — and built a one-page read within 48 hours. Then we went deeper over the following fortnight.

We mapped the claims: admitted financial debt, the homebuyer class and its likely sub-groups (those wanting possession versus those wanting refunds), operational creditors, and statutory dues. We walked the site to gauge genuine cost-to-complete against the resolution professional's estimate. And we modelled how a resolution plan would need to treat homebuyers to clear the 66% threshold.

Crucially, we flagged a Section 29A eligibility question on a party connected to the original promoter that would have complicated any back-channel route — and advised our client to stay well clear of it.

The outcome

Our read was that the asset was viable but that value turned almost entirely on a delivery-first plan the homebuyer class could support — not on the headline haircut. We laid out the route, the likely CoC arithmetic, and the cost-to-complete range, and we were candid about the execution risk of finishing a stalled project.

The fund used the work to decide its EOI posture with eyes open. We make no claim about the final outcome of the process; what we delivered was a fast, grounded basis for a go / no-go decision, and a transition-PMU plan ready if they had won.