NCLT approves Rs 1,814 cr resolution plan for Lavasa; Darwin winning bidder

The National Company Law Tribunal has approved a Rs 1,814 crore resolution plan for the private hill station Lavasa, nearly five years after the initiation of the insolvency resolution process.

Darwin Platform Infrastructure Ltd (DPIL) has emerged as the winning bidder for Lavasa Corporation Ltd, which is primarily in the business of the development of the private hill station by the same name in Pune.

In August 2018, the NCLT admitted the petition of lenders of the debt-ridden Lavasa Corporation, the real estate firm of HCC, for the insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).

In a 25-page order passed on Friday, the tribunal cleared the resolution plan at an investment of Rs 1,814 crore.

"The Resolution Plan contemplates an investment of Rs 1,814 crore, including a 'Resolution Plan Amount of Rs 1,466.50 crore to be paid/ discharged from funds infused over multiple tranches into the corporate debtor by way of cash funding and instruments, being equity, project inflows, loans, advances or a combination thereof, the order stated.

The corporate debtor is Lavasa.

A monitoring committee comprising the insolvency professional (earlier resolution professional), one representative each from financial creditors and Darwin Platform will supervise the implementation of the resolution plan.

"These amounts shall be utilised for (i) mandatory payments under the Code, (ii) payments proposed to be made to certain creditors (including operational creditors) and the secured financial creditors of the Corporate Debtors, and (iii) meeting the working capital and/or expenditure requirements, etc," the NCLT said in the order.

"The resolution plan meets the necessary statutory requirements under the Code as well as the regulations, we hereby approve the same," it added.

Set up in 2010 and a part of the Darwin Platform Group, promoted by Ajay Harinath Singh, DPIL is engaged in infrastructure contracts and services and caters to various segments like infrastructure, refineries, retail and hospitality, among others.

"The NCLT has entrusted us with a challenging task to develop an ambitious world-class smart city in the country. The verdict would reinforce our commitment to nation-building. Lavasa is now on the cusp of a remarkable resurgence. DPIL is committed to executing the plan as per the schedule proposed to the CoC. We are very eager to revitalise this ambitious project," Singh said in a statement.

Giving assurance to homebuyers, he said, "The plight of homebuyers, along with the concerns of secured financial creditors, would not go unnoticed by DPIL. The company promises to include the stakeholders in the revival process and prioritise their needs".

The monitoring committee, according to the order, "shall supervise the implementation of the Resolution Plan and shall review the operational performance of the Corporate Debtor".

The committee shall consist of an Insolvency Professional, one representative from financial creditors and one representative of the resolution applicant, the order said.

"The aforesaid Committee shall stand automatically dissolved on completion of the term of the Resolution Plan," it noted.

The Resolution Professional is further directed to hand over all records, premises/documents to the Resolution Applicant to finalise the further line of action required for starting the operation as contemplated under the resolution plan, it added.