Aditya Birla group company UltraTech Cement has filed an insolvency petition against HCC’s Lavasa Corporation at the Mumbai bench of the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
Aditya Birla group company UltraTech Cement has filed an insolvency petition against HCC’s Lavasa Corporation at the Mumbai bench of the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). The case was listed for hearing last week and will be heard again on November 16, according to the Mumbai NCLT’s cause list. However, it was not immediately possible to ascertain in what capacity UltraTech has filed the petition. Under the IBC, apart from lenders, creditors can also seek insolvency action against a company.
Lavasa reported a net profit of Rs 269 crore on the back of Rs 609 crore in revenues in FY17, HCC’s 2016-17 annual report said. Meanwhile, HCC had informed the bourses last month that lenders to Lavasa have decided to use RBI’s strategic debt restructuring mechanism to convert a portion of the loans to equity.
The conversion will also be applicable to two subsidiaries — Warasgaon Assets Maintenance and Warasgaon Power Supply, the regulatory filing had said.
“The lenders took notice of the fact that due to delay in implementation of the earlier joint lenders’ forum (JLF) approved structure, the project remained stalled for two years and an additional interest of around Rs 1,200 crore was accumulated, and hence release of working capital for the project needs to be resolved on priority,” the filing had added.
If admitted, the tribunal would appoint an interim resolution professional (IRP) to manage the company and the board will cease to exist.
Meanwhile, NCLT benches have so far admitted 11 of the 12 cases where the central bank had asked lenders to refer defaulting companies to the bankruptcy court. That apart, in August, RBI has sent a second list of companies to banks which they need to refer to the NCLT if they fail to resolve stress within December 13.
UltraTech and Lavasa did not respond to mails seeking response on the case.