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

The National Company Law Court has approved a ₹1,814 crore solution plan for private hill station Lavasa, nearly five years after the insolvency resolution process was initiated.

Darwin Platform Infrastructure Ltd (DPIL) has emerged as a winning competitor to Lavasa Corporation Ltd, which is primarily in the business of developing its own hill station of the same name in Pune.

In August 2018, the NCLT accepted the petition from the lenders of indebted Lavasa Corporation, HCC’s real estate subsidiary, for an insolvency settlement process under the Insolvency and Bankruptcy Code (IBC).

In a 25-page order passed on Friday, the court cleared the settlement plan with an investment of Rs 1,814 crore.

“The Resolution Plan provides for an investment of Rs. 1,814 crore, including “the Resolution Plan Amount of Rs. 1,466.50 crore to be paid/disbursed out of the funds injected in multiple tranches to the debtor of the Company by means of cash financing and instruments, whether equity, project streams, loans, advances or a combination thereof,” the application states.

The company’s debtor is Lavasa.

An oversight committee composed of an insolvency specialist (former resolution professional) and one representative each from the financial creditors and the Darwin Platform will oversee implementation of the settlement plan.

“These amounts shall be used for (i) payments made under the Code, (ii) payments proposed to be made to certain creditors (including operating creditors) and secured financial creditors of debtor companies, and (iii) meeting working capital requirements and/or expenses, etc.,” the NCLT said in the order.

She added, “The settlement plan meets the necessary legal requirements under the law as well as the regulations, and we hereby agree to that.”

Established in 2010 and part of the Darwin Platform Group, promoted by Ajay Harinath Singh, DPIL is engaged in infrastructure contracts and services and serves various sectors such as infrastructure, refineries, retail and hospitality, among others.

“The NCLT has entrusted us with the challenging task of developing an ambitious world-class smart city in the country. The ruling will reinforce our commitment to nation building. Now on the cusp of a significant resurgence. DPIL is committed to executing the plan as per the CoC’s proposed timeline. We are very keen to reinvigorate this ambitious project,” Singh said.

Offering homebuyers reassurance, he said, “The plight of homebuyers, along with the concerns of secured financial creditors, will not go unnoticed by DPIL. The company pledges to engage stakeholders in the revival process and prioritize their needs.”

Under the order, the Monitoring Committee is responsible for “overseeing the implementation of the resolution plan and reviewing the operational performance of the institutional debtor.”

The order said the panel should consist of an insolvency specialist, one representative of the financial creditors and one representative of the resolution applicant.

The statement indicated that “the aforementioned committee will be automatically dissolved upon completion of the term of the decision plan.”

He added that the resolution specialist was also instructed to hand over all records and premises/documents to the resolution applicant to finish the additional line of work required to start the process as envisaged under the resolution plan.