Rs 1,814-crore resolution plan for Lavasa Corporation gets NCLT approval
The Mumbai bench of NCLT has approved the Rs 1,814-crore resolution plan submitted by Darwin Platform Infrastructure (DPIL) for Lavasa Corporation. The resolution plan was earlier approved by the Committee of Creditors (CoC) with requisite majority of 96.41% vote share.
The resolution plan contemplates an investment of Rs 1,814 Crores including a resolution plan amount of Rs 1,466.50 crores to be paid/ discharged from funds infused over multiple tranches into Lavasa Corporation by way of cash funding and instruments, being equity, project inflows, loans, advances, etc.
The resolution plan provides Rs 1,152 crore for secured financial creditors against their admitted claims of Rs 5,533 crore. Unsecured financial creditors belonging to any class of creditors (homebuyers) receive Rs 442 crore against their claims of Rs 459 crore.
For homebuyers who do not wish to continue and wait for delivery for the fully-constructed property as proposed, the Resolution Plan envisages a full and final settlement by payment of 40% of their entire admitted claims within 24 months of the receipt of the environmental clearance for Phase 1.
Axis Bank Limited is a Secured Financial Creditor as well as an Unsecured Financial Creditor. The Resolution Plan provides that the total payment to be made to Axis Bank Ltd. is Rs 105.97 crores (including interest on the deferred payment). The resolution plan makes a provision of Rs 8.50 crore for operational creditors, who together has admitted claims of Rs 35 crore.
The resolution applicant proposes to allocate a sum of Rs 1.97 crore towards dues claimed by government and statutory authorities. The amount is 20.50% of the amounts claimed by government and statutory authorities and will result in the same proportion of recovery as is being made by the financial creditors.
Beyond the upfront amount/ upfront payment, Rs 50 Crores proposed to be paid at the end of 9 months from the Effective Date, Rs 70.26 crores is proposed to be paid at the end of 24 months from the effective date and subsequent thereto, the remaining amounts to the tune of Rs 1,371.240 crores, over a period of 9 years from the effective date.
| Types of creditors | Admitted Claims | Amount provided for in resolution plan |
| Secured Financial creditors | Rs 5,533 crore | Rs 1,152 crore |
| Unsecured Financial creditors belonging to any class of creditors | Rs 459 crore | Rs 442 crore |
| Operational creditors | Rs 35 crore | Rs 8.5 crore |
| Total | Rs 6,642 crore | Rs 1,602 crore |
Source of funds
The resolution plan envisages the amounts to be paid from cash funding to be generated inter alia, from project cash flows, external investments, internal accruals from the resolution applicant (Darwin Platform Infrastructure) group, etc. The resolution applicant has also provided a letter of undertaking and a non-disposal undertaking in respect of a director’s property to meet the aforesaid obligations.
Additionally, amounts towards undertaking repairs/ refurbishment of assets and working capital infusion, amounting to Rs 92.50 crores, proposed to be infused within 15 months from the effective date, will be raised by way of equity infusion/ unsecured loans / advances. The resolution applicant has also undertaken to incur costs to the tune of Rs 250 crores towards the costs to complete the unfinished inventory, which will be infused within a period 3 to 5 years from the effective date, by way of equity infusion/ unsecured loans/advances.
Unpaid CIRP costs to the tune of Rs 80 crore will be paid upfront, and in case the cost is in excess of Rs 80 crore, the additional amounts will be adjusted from payments proposed to be made to the secured financial creditors and the CIRP costs shall be paid in priority at the end of 90 days from the effective date.
About Darwin Platform Infrastructure
Darwin Platform Infrastructure Limited (DPIL) was established in the year 2010 and is engaged in infrastructure contracts and services. Currently, DPIL is involved in refurbishing of projects and maintenance works.
DPIL is part of the Darwin Platform Group, promoted by Ajay Harinath Singh and is supported by his two brothers, Vijay Harinath Singh and Dr. Balwant Singh. The Group is involved in various industry segments such as infrastructure, refineries, retail, hospitality, etc.
About Lavasa Corporation
The Mumbai bench of the NCLT admitted insolvency application against Lavasa Corporation Limited under Section 9 of the IBC by operational creditor Raj Infrastructure Private Ltd in August 2018.
On 26 February 2020, NCLT ordered a consolidated corporate Insolvency Process of Lavasa Corporation Limited and its 100% subsidiary companies — Warasgaon Asset Maintenance Limited and Dasve Convention Centre Limited.
Also Read: CIRP Status
