Lanco Infratech Ltd has initiated the process of corporate debt restructuring process to address mounting debt and liquidity concerns.
The debt recast relates to Lanco as a stand-alone entity and does not involve any of its subsidiaries or special purpose vehicles. According to company sources, the debt restructure is likely to be Rs 7,500 crore at the holding company, which has a fund-based exposure of working capital and short-term loans of Rs 3,200 crore and non-fund based limits of Rs 4,300 crore. Lanco cited the adverse macro-economic situation prevailing in India since last 12 months which has affected the EPC performance and the subsidiary business.
A meeting of lenders will be held in the first week of August and the process of debt recast will take about 90 days.