November 11, 2019

Lavasa Lenders May Approach NCLT Again To Seek Fresh Resolution If Haldiram’s Bid Is Found To Be Unacceptable

[ By Bobby Anthony ]


Lavasa Corporation’s lenders plan to decide on a bid by a Haldiram Snacks-led consortium on November 14 after a resolution professional has ruled that its bid is compliant with the Insolvency and Bankruptcy Code (IBC).

However, lenders are skeptical of accepting the bid by Haldiram Snacks since the upfront payment of Rs 100 crore to financial credit is small compared to their total claims of Rs 5,559 crore. There is also a clause under the IBC, which states that none of the bidders should have overdues with any financial creditor.

If the Haldiram bid is found to be unacceptable, lenders will have to approach the National Companies Law Tribunal (NCLT) again and seek a fresh resolution for Lavasa and its 40 subsidiaries.

The Haldiram-led consortium has offered Rs 2,125 crore against total claims of Rs 8,716 crore. Of this, Rs 1,646 crore would be repaid to banks and financial institutions, which have claims of Rs 5,559 crore.

Haldiram plans to position the hill station as an education, tourist and holiday destination. The Haldiram-led consortium’s proposal includes an upfront payment of Rs 246 crore to creditors, of which Rs 100 crore would be paid to financial creditors.

Key lenders to the project are Union Bank of India with admitted claims of Rs 710 crore, L&T Infrastructure Finance (Rs 656 crore), Asset Reconstruction Company of India (Rs 606) and Bank of India (Rs 567 crore).

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