Corporation on Thursday said its lenders have decided to convert part of their loans into equity as part of debt
restructuring along with fresh fund infusion from strategic investors to complete its stuck-township project near Pune in Maharashtra.
Corporation Ltd, which is developing a hill city 'Lavasa' near Pune, has an outstanding debt
of Rs 5,100 crore, sources said.
In a regulatory filing, HCC's realty
informed that "lenders have decided to invoke strategic debt
The SDR process will involve lowering of debt
burden by converting a part of lenders loans into equity, Lavasa
This will also involve implementation of the proposed business plan and infusion of fresh capital by a financial or strategic investor to implement the project, it added.
This decision was taken at a joint lenders forum (JLF) meeting on September 20. The reference date is September 20.
"As part of a comprehensive solution, the SDR has been invoked in Lavasa
Corporation Ltd and its wholly owned subsidiaries -- Warasgaon Assets Maintenance Ltd
and Warasgaon Power Supply Ltd," the filing said.
had brought the SDR scheme in 2015 for resolution of bad loans.
The SDR will help protect the value of the assets within the timelines prescribed by RBI
in its notification.
"The lenders took note of the fact that due to delay in implementation of earlier JLF approved structure, the project remained stalled for 2 years and an additional interest of around Rs 1,200 crore was accumulated, and hence of release of working capital for the projects need to be resolved on priority," the filing said.
According to sources, Union Bank is the lead banker in Lavasa
Corporation and Axis Bank in the two subsidiaries.