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Lanco Infratech faces liquidation – Report

Infra News - Published on Mon, 07 May 2018

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Money Control reported that Lanco Infratech faces liquidation as Thriveni Earthmovers, the sole bidder for the debt-laden firm, has failed to get the required approval from lenders. The power and construction firm is one of the top 12 large stressed accounts referred to insolvency proceedings by the Reserve Bank of India. For Lanco Infratech to avoid liquidation, Thriveni's bid required at least 75 percent of lenders' votes. Only 15 percent of lenders voted in favour the iron ore mine developer-cum-operator's bid.

The company said in a filing to the bourses that "This is to inform you that the resolution plan submitted by Thriveni Earthmovers was presented by the Resolution Professional for the approval of the committee of creditors (CoC), in accordance with the Insolvency and Bankruptcy Code (IBC), 2016 and the rules and regulations framed thereunder. On account of less than 75 percent of the votes being cast in favour, the aforementioned approval of the CoC could not be obtained.”

Lanco Infratech owes INR 45,000 crore to a group of lenders, including ICICI Bank with exposure of INR 7,380 crore and IDBI Bank at INR 3,680 crore. last August, the lenders had moved National Company Law Tribunal seeking resolution under the Insolvency and Bankruptcy Code in August 2017.

The filling said that "Since the corporate insolvency resolution period expires May 4, 2018, the necessary application is being filed by the Resolution Professional with the National Company Law Tribunal, Hyderabad Bench, for liquidation of the company, or for any other direction which the NCLT may deem fit on account of the revised proposal dated May 1, 2018, submitted by Thriveni Earthmovers.”

Thriveni Earthmovers is said to have offered INR 1,400 crore in cash and liability for INR 38,000 crore of debt at the subsidiary level.

Other bidders included US asset management company Ingen Capital, US energy firm Penn Energy, DivyaSree Developers from Bengaluru, Solarland China, Cube Highways backed by I-Squared, and Kalyani Developers, Bengaluru.

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Posted By : Nanda Koijam on Mon, 07 May 2018
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