Lavasa resolution: Lenders extend deadline to submit bids till March 31

by Emma

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The bankruptcy court had also approved the lenders’ request to consolidate the township developer and its wholly owned subsidiaries, Warasgaon Assets Maintenance and Dasve Convention Centre, as one.

By Ankur Mishra

Lenders to Lavasa Corporation have extended the deadline for submission of bids till March 31, sources close to development told FE. Lenders had originally fixed November 2020 as the deadline to submit bids, but it was repeatedly extended as per requests from the bidders.

Bidders who had shown interest in Lavasa include Oberoi Realty, Haldiram Snacks, Pune-based Aniruddha Deshpande, and US-based fund Interups. The company is yet to receive final bids from suitors, as per sources.

The extension of deadline is seen as a last-ditch effort by the lenders to save the company from going into liquidation. “We are hopeful to get final bids from the suitors within the deadline,” said one bank official aware of the development. “If we do not get any buyer, we will have no option but to recommend the company for liquidation,” he said.

Lavasa is a subsidiary of construction major Hindustan Construction Company (HCC) and has been undergoing insolvency proceedings at the National Company Law Tribunal, Mumbai, since August 2018. The bankruptcy court had also approved the lenders’ request to consolidate the township developer and its wholly owned subsidiaries, Warasgaon Assets Maintenance and Dasve Convention Centre, as one.

The Lavasa Hill City project was originally set up by HCC in 2000. Lavasa, however, defaulted on bank loans after the environment ministry issued a stop-work order to the project in 2010. The company has total admitted claims of `5,561 crore from financial creditors. Union Bank of India has the highest admitted claims of `701 crore, while Bank of India has claims worth `567 crore. Similarly, Axis Bank has admitted claims worth `511 crore and Central Bank of India has claims of `507 crore.

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