Haldiram Snacks wants Lavasa Corporation split into three entities

The consortium, led by Haldiram Snacks Private Limited to takeover Lavasa, has offered to split Lavasa Corporation into three entities . The offer is to be cleared by the lenders. 

In a meeting held in Mumbai on Thursday, the lenders vetted the three offers made by the bidders and decided to vote on the three resolution plans so that the resolution professional could make an application for approving the plan to the National Company of Law Tribunal (NCLT) by November 6. Apart from Haldiram Snacks, the other two bidders are Pune-based builders — Anirudha Deshpande and UV ARC. Lavasa Corporation was sent for debt resolution last year after the company failed to repay its debt worth Rs 4,150 crore.

According to Haldiram’s proposal, Lavasa Corporation will be split into three entities, with parent company holding all the carry forward losses of income tax and unabsorbed depreciation. 

The second entity will then merge all wholly-owned subsidiaries of Lavasa (other than Dasve Convention Centre and Warasgaon Asset Management) and all units wherein Lavasa owns 51 per cent or more stake. 

According to the plan, Rs 500 crore will be infused into the Special Purpose Vehicle (making the offer) as equity contribution while another Rs 500 crore will be infused in the SPV as non-convertible debentures. Subsequently, another Rs 1,046 crore will be lent to the SPV via two NCDs issues. The total investment by the consortium will be Rs 2,046 crore to repay Lavasa creditors.

Haldiram has also offered two options to the homebuyers. The plan is the homebuyers in Dasve township will be given possession in 3 to 5 years while homebuyers in Mugaon will be given possession in 4 to 7 years. However, this is subject to homebuyers clearing all the dues, including balance sale consideration, interest or penalty or fee due to Lavasa Corporation. Mugaon homeowners also have the option to shift to Dasve and the homeowners who are transferred to the Dasve will have to pay an additional Rs 1,000 per square feet within 210 days.

The lenders sought to know the sources of the Rs 500 crore that to be infused into the SPV and by what instrument would these funds be pumped into the three entities.

The lenders also enquired about the mechanism through which the SPV will be paying the institutional financial creditors and sought justification with respect to working capital requirements, capex, and refurbishment cost. The offers by Deshpande and UV ARC were also discussed.