Committee of Creditors to mull, finalize Lavasa takeover bids on Monday

MUMBAI: The Committee of Creditors (COC) of Lavasa shall be assembly on Monday to contemplate and take a name on bids acquired from entities to purchase the nation’s first proposed privately developed metropolis. The decision course of can be anticipated to begin instantly after that, stated two individuals with direct data of the event.

“Friday is the last day for submissions of bids. We are expecting at least three to four bids. The committee of creditors will open the bids and take them into consideration at its meeting on Monday which is when we will have details on the bids,” stated an individual accustomed to the method.

Last 12 months a consortium led by Haldiram Snacks and two property builders, specifically Pioneer Facor IT Infradevelopers and Sanar Property had expressed curiosity in bidding for the hill metropolis. It is unclear whether or not they have submitted ultimate bids.

“All bids are expected only on the last day so we will wait for the day to get over. We are expecting some interest and hopefully the final resolution process can start immediately next week. There is a chance that some bidders may want more time to make their offer and the CoC may also consider the same,” stated one other individual accustomed to the method.

Set up in 2000 by the Ajit Gulabchand-led Hindustan Construction Company (HCC), Lavasa was growing the nation’s first privately developed metropolis unfold over 20,000 acres in Mulshi and Velhe areas in Maharasthra’s Pune district. However, the challenge has been entangled in varied points together with environmental violations and land acquisition.

After Lavasa and its subsidiaries defaulted on debt obligations, the lenders had looked for debt decision by means of the National Company Law Tribunal (NCLT) in August 2018 below the Insolvency and Bankruptcy Code, 2016. As of January, lenders had claimed over Rs 7,700 crore from Lavasa Corporation and its subsidiaries.

At the time of admitting it for the decision course of, Ajit Gulabchand-promoted Hindustan Construction Company (HCC) owned 68.7% stake in Lavasa. Other key shareholders included Gautam Thapar’s Avantha Group with 17.18%, Venkateshwara Hatcheries with 7.81%, and Vithal Maniar with 6.29% stake.

Union Bank of India, L&T Infrastructure Finance, Asset Reconstruction Company of India and Bank of India are key lenders to the challenge.

The Mumbai bench of NCLT had accepted the request of Lavasa’s lenders to consolidate the township developer and its wholly-owned subsidiaries Warasgaon Assets Maintenance and Dasve Convention Centre as one. A consolidated entity will get higher valuation when they’re liquidated below the company insolvency decision course of (CIRP), the lenders had instructed the devoted court docket.

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