Lanco Infratech Ltd is expected to sign up a Master Corporate Debt Restructure Agreement before the month end by infusing promoter’s equity of Rs 152 crore.
The board of directors on Monday accepted the Letter of Approval from the Corporate Debt Restructuring Empowered Group approving the debt restructuring proposal submitted by the company.
The CDR Empowered Group approved the proposal at its meeting on December 11 and the letter was issued on December 20.
The board of directors of the infrastructure company passed resolutions for the implementation of the approved CDR Scheme and expect to conclude the master restructure agreement before the month end, a company official told
Rs 7,000-cr CDR The company, which has a total debt of about Rs 36,000 crore at the holding company level and at the special purpose vehicles, had sought approval for restructuring about Rs 7,000 crore debt for the holding company and also Rs 3,500 crore towards working capital.
The consortium of banks headed by IDBI has approved Rs 4,100 crore and Rs 2,500 crore fund-based amounts and Rs 4,300-crore non-fund based amount. In addition, the company has also secured a nod for Rs 700-crore non-CDR amount. Together, these work out to Rs 11,600 crore. As part of the restructuring process, the company has to divest stake in some of the assets, such as power plants in Udipi and Budhil and its solar power venture. Besides, the promoters have to infuse Rs 152 crore as their equity. This has also been concluded, he said.
The company is in the process of divesting stake in some of its assets in order to slash its debt level and free up equity for some other projects. There has been a delay due to market conditions.
On Monday, Lanco Infra shares closed at Rs 6.90, up 1.77 per cent on the BSE.