Lavasa’s lenders to convert part of loans into equity
Realty firm Lavasa Corporation on Thursday said its lenders have decided to convert part of their loans into equity as part of debt restructuring along with fresh fund infusion from strategic investors to complete its township project near Pune in Maharashtra.
Lavasa Corporation Ltd, which is developing a hill city ’Lavasa’ near Pune, has an outstanding debt of ₹5,100 crore, sources said. In a regulatory filing, HCC’s realty arm Lavasa informed that “lenders have decided to invoke strategic debt restructuring (SDR)”.
The SDR process will involve lowering of debt burden by converting a part of lenders loans into equity, Lavasa said. This will also involve implementation of the proposed business plan and infusion of fresh capital by a financial or strategic investor to implement the project, it added.