Lavasa Corporation to face insolvency
Construction firm HCC's real estate firm Lavasa Corporation will face insolvency proceedings with the NCLT on Thursady admitting plea of lenders of the debt-ridden realty firm. Lavasa Corporation is developing a hill city 'Lavasa' near Pune in Maharashtra. In a filing to the BSE, the HCC on Thursday said that the National Company Law Tribunal(NCLT) has admitted a plea filed by operational creditors who initiated Corporate lnsolvency Resolution Process (CIRP) against Lavasa Corporation under the lnsolvency and Bankruptcy Code. NCLT appointed Devendra Prasad as Interim Resolution Professional (IRP). Lavasa Corporation Ltd is promoted by Hindustan Construction Company with 68.7 per cent per cent stake. Avantha Group has 17.18 per cent per cent stake, while Venkateshwara Hatcheries has 7.81 per cent stake and VithalManiar 6.29 per cent stake. Lavasa is a very special urban development project and an initiative well ahead of its time. While shareholders' interests have been sacrificed, we are hopeful that the pioneering efforts to grow Lavasa into a thriving smart city will now find stewardship in the hands of a new owner, enabled by NCLT," HCC Director and group CEO Arjun Dhawan said. A swift resolution through IBC would benefit all stakeholders, especially customers, who have patiently supported Lavasa through this tumultuous period, he added. Lavasa was initiated as per the Maharashtra's government policy and regulations for new hill stations as India's first privately built smart city. Lavasa has made substantial progress in building substantial infrastructure, over 2,200 apartments and villas, hotels and numerous city amenities and services, including an international conventioncentre.
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