Shares of Lanco Infratech continued to witness a steep fall, touching an all-time low of ₹1.70, down 9.57 per cent, on the BSE on Tuesday. This is in addition to the fall of over 20 per cent over the past two days on news of bankruptcy proceedings making the rounds.
RBI move Earlier, the RBI had directed IDBI Bank, the lead manager of Lanco to initiate the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016.
The company had in a communication informed that the amounts mentioned include ₹8,146 crore for fund-based outstanding exposure and ₹3,221 crore for non-fund-based outstanding exposure as on March 31, 2016.
The government has initiated a process to address bad debts and had recently chosen 12 corporate entities under the Insolvency and Bankruptcy Code Proceedings.
Under the initiative, the government and the Reserve Bank of India RBI plan to expeditiously address these cases, wherein Lanco Infra is one such company chosen for resolution of long pending dues.
According to the proposed move to address these stretched companies, over the next six months the company and the lenders would regularly interact and keep a close watch on debt and seek to address them by thrashing out an amicable solution.
The Joint Lenders Forum or the consortium of banks that have extended loans to the company will meet regularly and try and find a solution.