Lenders terminate bankruptcy proceedings against Lavasa Corporation

Lenders who have run up Rs 7,700 cr bad loans will call for fresh bids

The lenders of Lavasa Corporation, a hillside township near Pune, have terminated bankruptcy proceedings against the company as they did not receive good bids. The lenders, saddled with Rs 7,700 crore of bad debt in the company, will invite fresh bids.

According to a banking source, the National Company Law Tribunal (NCLT) has ordered consolidation of bankruptcy proceedings against all subsidiaries along with Lavasa Corporation and, hence, fresh bids will be called. Lavasa, a subsidiary of HCC, was sent for bankruptcy proceedings in 2018 and has already missed deadlines prescribed in the Insolvency and Bankruptcy Code (IBC), 2016.

Axis Bank has made