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Debt-struck Lanco Infratech strives for an easy loan repayment

Comments(2) Sub Category:Bangalore,Delhi-NCR,Hyderabad,Mumbai,Realty News Posted On: Jul 20, 2012

Lanco Infratech, a realtor limited to power and road projects, with nearly Rs 23,000 crore of long-term debt, is negotiating with some banks for an easier loan repayment schedule.

Sources said that the company is negotiating with individual banks for extension of loan tenure and lowering of interest cost as some of its power plants have been idled by fuel shortages.

These discussions are taking place without formally applying for a restructuring under the so-called Corporate Debt Restructuring Cell since the company is hopeful of making repayments, they said.

If Lanco’s loans are indeed admitted for a formal restructuring, it would become the biggest ever at nearly Rs 23,000 crore.

The company would like to avoid the ‘restructuring‘ tag since any admission into a formal bailout process could lead to banks shutting the funding tap to the group’s other projects where financial closure has been done, but credit is yet to be drawn.

To read more real estate news:

Godrej Properties shares up over 7%

Ascendas likely to buy Shriram’s SEZ in Chennai

Source: The Economic Times

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