MUMBAI: Creditors of Lavasa Corp have approved the Welspun-Ashdan consortium’s takeover of India’s first privately-owned hill town project, which faced administration due to overwhelming debt.
Voting results released over the weekend indicate that the consortium, consisting of Welspun subsidiary Paschim Sagar Properties and Pune-based Ashdan Properties, received 92.21% of the votes, with the larger creditors, excluding homebuyers, supporting the plan.
Another competitor, Valor Estate, secured 84.16% of the votes, primarily because Axis Bank, holding 8.89% of the debt, rejected the proposal, while ACRE ARC, with 6.54% of the debt, abstained from voting.
These results come amid ongoing litigation in the NCLT, where Valor has petitioned against the creditors’ decision to allow Welspun-Ashdan to adjust its payment plan after the bid submission deadline.
“Voting commenced in September and concluded by November, but the NCLT held up the results while considering objections to the creditors’ committee’s decision. The resolution professional (RP) has acted upon a court order from January 29, which did not halt the resolution process,” shared an informed source.
The order from the two-judge bench, consisting of Sanjiv Dutt and Ashish Kalia, permitted RP Udayraj Patwardhan to push forward with the bankruptcy proceedings.
“The Resolution Professional can submit applications as needed under the law. As a result, the pending applications have been dismissed,” the bench noted, referring to specific applications submitted to the court.
It remains unclear what applications were mentioned, and the RP Patwardhan did not respond to inquiries for clarification. Additionally, lead lender Union Bank of India did not provide comments as well.
Valor had filed an interlocutory application in the Mumbai NCLT, seeking permission to modify its resolution plan for the troubled Lavasa Corp following the approval for competitor Welspun-Ashdan Developers to alter their payment schedule.
Rival Writ
In September, Valor petitioned the court after Welspun-Ashdan was granted the ability to modify its payment timeline, leading to the voting process managed by the RP. Valor’s application remains pending, and the company did not respond to RealtyDailyNews’s request for comments.
The Welspun-Ashdan consortium has proposed to finalize its payments within four years, a reduction from the previously requested five years, allowing them to outpace competitors. This was authorized by the RP and provided no opportunity for other bidders to revise their proposals.
Valor’s bid of ₹946 crore, based on net present value, was higher than Welspun-Ashdan’s ₹845 crore, and Mumbai-based Yogayatan Group’s ₹830 crore, prior to amendments to Welspun’s proposal. “Welspun’s commitment to a higher upfront payment, along with their robust financial standing and institutional support, has given them a competitive advantage,” remarked another source close to the situation.
The Welspun-Ashdan coalition has pledged an upfront payment of ₹65 crore, exceeding Valor’s competing bid of ₹50 crore. Future legal actions from any parties involved in the case regarding the RP’s decision to finalize the voting are yet to be determined.
