October 12, 2017

Lavasa Corporation under insolvency case filed by UltraTech

 Ultra tech

On October 9, an insolvency petition has been filed by Aditya Birla group company UltraTech Cement against HCC’s Lavasa Corporation at the Mumbai bench the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).

The case was listed for the hearing earlier but the NCLT has fixed November 16 as the date for hearing again.

According to the regulatory filing, the conversion will also be applicable to two subsidiaries — Warasgaon Assets Maintenance and Warasgaon Power Supply. “The lenders took notice of the fact that due to delay in implementation of the earlier joint lenders’ forum (JLF) approved structure, the project remained stalled for two years and an additional interest of around Rs 1,200 crore was accumulated, and hence release of working capital for the project needs to be resolved on priority,” the filing had added. Meanwhile, Lavasa had reported a net profit of Rs 269 crore on the back of Rs 609 crore in revenues in FY17.

In September, Ericsson India had filed an insolvency case against Anil Ambani-led Reliance Communication (RCom) and DBS Bank and Standard Chartered Bank filed an insolvency case against edible oil maker Ruchi Soya Industries Ltd.

The companies had filed the petition at the National Company Law Tribunal (NCLT) Mumbai branch to initiate insolvency proceedings against the companies under the Insolvency and Bankruptcy Code.

As per the law, a person is considered to be insolvent when the party has ceased to pay its debts in the ordinary course of business, or cannot pay its debts as they become due, or is insolvent within the meaning of the Bankruptcy Code.

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