Oberoi Realty, US-based fund Interups to bid for cash-strapped Lavasa

During the committee of creditors (CoC) meeting held in early January, the lenders had decided to place fresh expressions of interest (EoIs) before the NCLT.

Mumbai-based Oberoi Realty and US-based fund Interups have joined the race to acquire Lavasa Corporation, a real estate city near Mumbai.

Lavasa is facing bankruptcy proceedings at the National Company Law Tribunal (NCLT) Mumbai after it failed to repay debt of Rs 6,200 crore. During the creditors meeting held in early January, the lenders had decided to place fresh expressions of interest (EoIs) before the NCLT.

At the hearing on Monday, the NCLT agreed to consolidate the bankruptcy proceedings of Lavasa and its subsidiaries into a single resolution, so as to get the best value of all assets, and also agreed to include the new resolution applicants.

Interups is a New York-based financial services group with expertise in developing financial models for restructuring distressed assets. 

In its presentation to lenders, the fund said it owns 27,000 self-directed retirement asset clients, with $1.5 billion in assets.

BSE-listed Oberoi Realty, on the other hand, joined the race for Lavasa Corporation, citing synergies of operations.

During the CoC meeting, ARCIL, a CoC member, had supported the new applicants for Lavasa, but it warned that the existing applicants may raise concerns regarding the acceptance of new applicants by CoC members at an advanced stage of the insolvency process.

The resolution professional will now rerun the entire process for inviting EoIs and provide bidders access to a virtual data room.