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Lanco infratech to assure getting back what they owed

No Comments Sub Category:Realty News Posted On: Sep 10, 2014

India’s top lenders, impatient with the delays in cash-strapped Lanco Infratech asset-disposal programme, are planning to take direct charge of the process to ensure they get what was owed to them, while providing fresh loans to get projects that have been stuck for various reasons moving again, according to an internal note.

The banks, which have an exposure of Rs 49,000 crore to Lanco, will set up a three-member committee to run asset divestment. The company, which has been looking to raise money to pare debt, recently found a buyer for its Udupi power project but hasn’t met with much success other than that. The lenders in turn will give fresh loans to complete projects that have got stuck.

The bankers to Lanco, which has a market cap of less than Rs. 2,000 crore, have decided that the lead banker of project under construction may re-appraise the project within September 2014 and consider financing either 80:10 or convert part of the debt into equity upfront to ensure projects are completed and lenders can recoup their dues. This means that banks will give fresh loans to the extent of 80 percent of the project cost.

Source: The Economic Times

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