Lavasa creditors set eligibility criteria for Resolution 2.0 process
Real Estate

Lavasa creditors set eligibility criteria for Resolution 2.0 process

The creditors of Lavasa Corp, once promoted as India's first private hill town project, have established eligibility criteria for potential bidders. They are now seeking new expressions of interest (EOIs) and have set a requirement of Rs 1 billion in net worth along with a refundable deposit of Rs 2.5 million. This move comes as they attempt to find a buyer for the second time, after the previous effort was abandoned earlier in the year.

According to the minutes of a meeting held on September 17 by the Committee of Creditors (CoC), 77 per cent of lenders, led by Union Bank of India (UBI), agreed on these minimum criteria, which differ from the previous process that lacked any specific requirements to "maximise participation" from applicants.

In addition to these eligibility criteria, the lenders are looking to make further changes. It is anticipated that a new resolution professional (RP) will replace Shailesh Verma, and a new process advisor may be appointed instead of Deloitte, as both have been involved in what is considered a failed process in the past. A person familiar with the matter mentioned that a joint lenders' forum, convened by UBI, is likely to finalize the timelines and appoint a new RP as early as next week.

Lenders are aiming to avoid the issues that arose in the previous process. It has been generally agreed that a new Form G, inviting fresh applicants, will be issued, possibly in the first week of October. Additionally, the lenders are narrowing down their choices for the new RP, according to another person knowledgeable about the situation. Neither Verma nor UBI responded to requests for comment.

Union Bank holds 12% of the total dues, amounting to Rs 66.42 billion. Phoenix ARC is the second-largest creditor, with nearly 11% of the debt, which it acquired from L&T Finance before the plan was approved by the National Company Law Tribunal (NCLT) in July 2023. Another significant creditor is Arcil, which holds more than 10% of the debt. Bank of India and Axis Bank are also major creditors, each with over 8% of the total debt.

Earlier this month, after a year of hearings, the Mumbai bench of the NCLT allowed the revival of the insolvency process, permitting the CoC to exclude the period between July 13, 2021, and January 3, 2022, from the resolution timeline.

The creditors of Lavasa Corp, once promoted as India's first private hill town project, have established eligibility criteria for potential bidders. They are now seeking new expressions of interest (EOIs) and have set a requirement of Rs 1 billion in net worth along with a refundable deposit of Rs 2.5 million. This move comes as they attempt to find a buyer for the second time, after the previous effort was abandoned earlier in the year. According to the minutes of a meeting held on September 17 by the Committee of Creditors (CoC), 77 per cent of lenders, led by Union Bank of India (UBI), agreed on these minimum criteria, which differ from the previous process that lacked any specific requirements to maximise participation from applicants. In addition to these eligibility criteria, the lenders are looking to make further changes. It is anticipated that a new resolution professional (RP) will replace Shailesh Verma, and a new process advisor may be appointed instead of Deloitte, as both have been involved in what is considered a failed process in the past. A person familiar with the matter mentioned that a joint lenders' forum, convened by UBI, is likely to finalize the timelines and appoint a new RP as early as next week. Lenders are aiming to avoid the issues that arose in the previous process. It has been generally agreed that a new Form G, inviting fresh applicants, will be issued, possibly in the first week of October. Additionally, the lenders are narrowing down their choices for the new RP, according to another person knowledgeable about the situation. Neither Verma nor UBI responded to requests for comment. Union Bank holds 12% of the total dues, amounting to Rs 66.42 billion. Phoenix ARC is the second-largest creditor, with nearly 11% of the debt, which it acquired from L&T Finance before the plan was approved by the National Company Law Tribunal (NCLT) in July 2023. Another significant creditor is Arcil, which holds more than 10% of the debt. Bank of India and Axis Bank are also major creditors, each with over 8% of the total debt. Earlier this month, after a year of hearings, the Mumbai bench of the NCLT allowed the revival of the insolvency process, permitting the CoC to exclude the period between July 13, 2021, and January 3, 2022, from the resolution timeline.

Next Story
Real Estate

Indian real estate attracts USD 1.4 bn institutional investments in Q1 2026: Vestian

Institutional investments in India’s real estate sector touched USD 1.4 billion in Q1 2026, marking the highest first-quarter inflow since 2022, according to Vestian. While investments fell 62 per cent quarter-on-quarter due to an exceptionally high base in the previous quarter, they rose 74 per cent compared to the same period last year, reflecting sustained investor confidence despite rising geopolitical and macroeconomic challenges.Commercial real estate remained the key driver of investment activity during the quarter, accounting for 80 per cent of total inflows, sharply higher than 38 p..

Next Story
Infrastructure Transport

VECV crosses 1 lakh annual vehicle sales milestone in FY26

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has surpassed the 1 lakh annual sales mark in FY 2025–26, recording its highest-ever commercial vehicle sales performance. The company said it sold more than 100,000 vehicles during the year, marking a major milestone aligned with the original vision of the Volvo–Eicher joint venture.The strong performance was supported by demand across categories. Light and Medium Duty (LMD) trucks contributed 47,789 units, accounting for 46.1 per cent of total sales. Heavy Duty (HD) trucks recorded 26,867 units (25.9 pe..

Next Story
Technology

Rodic Digital & Advisory partners SatSure to deploy EO intelligence in public sector

Rodic Digital & Advisory (RDA), the strategic advisory and digital transformation arm of Rodic Consultants, has signed a strategic cooperation Memorandum of Understanding (MoU) with SatSure to jointly pursue opportunities in India’s public sector. The collaboration aims to integrate high-resolution Earth Observation (EO) data and geospatial AI into government workflows to strengthen monitoring, compliance, and operational decision-making across key sectors.The partnership combines SatSure’s Earth intelligence capabilities with RDA’s expertise in government digital transformation and ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement