HCC falls 17% on Lavasa bankruptcy possibility

Infrastructure developer Hindustan Construction Company (HCC) on Thursday slipped most  in intra-day trade (17.30%) since August 24, 2015, as its smart city project Lavasa continues to suffer from debt burden and will need to initiate bankruptcy proceedings to secure debtors’ interest.

DNA Money had reported the development on Thursday. HCC told exchanges that Lavasa is working jointly with lenders for a financial solution.

It said due to the recent IBC notification, financial solution process has slowed down till clarity on the finer nuances of the revised framework emerges.